Communities need capital for many reasons – to help local businesses start or expand, to build essential infrastructure like housing or renewable energy, or to take advantage of local opportunities.   

But instead of looking to financial institutions or outside investors, local people can pool funds and direct them to where they’re most needed – by starting a community investment co-operative.   

A community investment co-op is a great tool for economic development and growth. And because they are controlled by local people, they prioritize projects that will have a big impact on the community.   

So maybe you want to invest where you live. Put your money where your home is. There are a few ways people in your community could get together and do this, and while no two investment co-operatives are the same, here are three big trends among these co-ops in Western Canada.  

1. Lending  

Many rural communities have lost their financial institutions as banks try to save costs or credit unions merge. This leaves businesses without local access to financial support.  

Communities that want to ensure local entrepreneurs can access the capital they need can form a community investment co-op that lends money to businesses or invests in their companies. 

Unlike banks, these co-ops can offer flexible lending arrangements or equity investment that meets the needs of entrepreneurs. The Sangudo Opportunity Development Co-op in central Alberta is a fantastic example of how this kind of investing supports a small business community.   

2. Asset Ownership 

 Maybe your community’s businesses are already well supported by the local credit union, but your town has a lot of vacant buildings, not enough homes, or important services that are at risk of closing.   

In this case, your community investment co-op could use its funds to invest in local assets, like an office building, homes, or buying a business from a retiring owner. One of the Sangudo co-op’s projects involved building and selling new family homes to attract new residents. And in Sooke, BC, community members formed the Sooke Community Investment Co-operative to purchase and operate the local café when it was at risk of closing.   

3. Community Energy  

Do you value investing locally and making energy production greener? Then you should consider forming a community investment co-op that invests in solar or wind projects.  

Depending on where you live, provincial governments allow community-owned power generation to feed into the grid or offset power from other sources. This system allows ordinary people to invest in power production and see a return. The Ottawa Renewable Energy Co-operative is among the largest of these in Canada and you’ll find similar co-ops throughout the west including Wascana Solar Co-op in Regina.   

So, why not invest in your community where you can actually see your money making a difference? Discuss local priorities with other community members and your local Economic Development Officer to determine what kind of investment co-op your town needs. Then give us a call. Our team of experts can help you get started.