Co-op Development in BC: An Update - November 2009

16 Nov 2009

Many people who care about co-ops will have helped BCCA and the other co-operative associations lobby the federal government to renew the Co-operative Development Initiative (CDI), the nation-wide program funded through the Co-operatives Secretariat. We were very pleased when the minister, Jean-Pierre Blackburn, announced in May of this year that the program would be extended through 31 March of 2013. As the media release put it at the time: "This $19.1 million investment will enable Canadians to continue to establish new co-operatives and test innovative methods for using the co-operative model to meet the socio-economic challenges of today and tomorrow."

For British Columbians, it means that the Advisory Service program, focusing on emerging co-ops and run by the BCCA, can continue. It also means that BC co-ops are able to apply to the Innovative Co-operative Projects component of CDI, a granting program that can provide up to $75,000 in funding to more established co-ops.

Innovative Co-operative Projects (ICP)

The ICP program provides very useful funding to co-ops, but it won't always be a perfect fit with a co-op's current needs. The policy priorities that are addressed through the Innovative Co-operative Projects are:

•           agriculture, including farmer-driven value-added agriculture and biofuels;

•           rural/northern community development;

•           innovative goods and services, including innovative technologies; and

•           capacity-building and sustainability.

Much more about the program can be found on the website of the Canadian Cooperative Association (CCA) at http://cccm.coopscanada.coop/en. There, you will find revised application forms, an applicant's guide and other useful documents, all available for immediate download. And please remember - if you are a new applicant or are submitting a revised application, the deadline for the second round of submissions for the current fiscal year (April 2009-March 2010) is 31 December 2009.

For the first round of ICP adjudication in July, we at BCCA were struck by the range of projects, their enormous promise, their energy...and their sheer numbers! If anyone doubted that BC is a dynamic centre of co-op activity, they had only to take a quick look at the distribution of ICP applications submitted across the country. Out of a total of 194 submissions, 46 came from BC, the second highest number in the country. (Quebec was first, with 48, and Ontario, third, with 38). At 23.7% of the total, the number of BC submissions is well ahead of all the other provinces and territories on a per-capita basis.

Not only is the number of BC co-ops applying to the ICP program striking, the range of co-op activity in the province is similarly dramatic. A sample of emerging and growing co-operatives to which BCCA has recently provided services illustrates the broad range of sectors keen to apply the co-op model: children's day care, integrated health care for new immigrants, artists' co-ops, agricultural communities producing organic vegetables or artisanal value-added products, and "cutting-edge" co-ops developing innovative internet technologies or using proprietary scheduling software to develop a rapidly-growing car-share sector.

Presently, all the ICP applications from the July competition have been thoroughly reviewed by Ottawa-based staff and the complete list of applications recommended for funding have been forwarded to the Minister's office.  At present, that is where the list resides and successful applicants will soon receive the Minister's approval, with calls and letters going out shortly after, and cheques soon to follow!

The next grant deadline is 31 December 2009. As with the first round, BCCA will be able to offer a review service to BC applicants. Details on this service will be posted on the BCCA website (http://bcca.coop).

BCCA's Advisory Services Program

The Advisory Services program is intended to assist start-up co-ops sort through the basic questions that must be addressed as the vision of the group takes shape on its way to becoming a reality. As BCCA staff members don't always have the time needed to deal with all enquiries, we also match the co-op proponents with a co-op developer, an experienced consultant who may be based in Vancouver or - more conveniently - in a community closer to the co-op's location.

This advisory service, also funded in part by the CDI, provides up to two hours of consulting time - at no cost to the group members! The BCCA assistance helps prepare emerging co-ops for the sequence of steps leading to incorporation and launch of the business. During the last twelve months, well over 100 groups have been assisted.

If you are interested in this service, or know of people who might be, all you have to do is get in touch with the office. We can get the consulting process going very quickly.

The Co-op Momentum Fund of BC

The Advisory Services program, ICP funding, support from other granting bodies, loans and share capital - they all contribute to the financial and organizational development of new co-operative initiatives.

They're all valuable and useful...but they're not enough to meet the needs of BC's dynamic co-op sector.

This is why we are hoping to create a new, BC-centred fund, the Co-operative Momentum Fund of BC.

This is why BCCA has recently approached potential funders in BC and beyond, writing:

"The BC Co-operative Association is taking the lead in developing what we hope will be an important new source of funding for BC co-ops: the Co-operative Momentum Fund of BC. This fund is focused on co-op enterprises at the post-launch through early- and middle-growth stages.

We need the financial support and direct involvement of the co-op sector - and beyond - if we are to meet the Fund's fundamental goal: to help move emerging co-operatives forward at critical developmental phases, and, in the process, to turn the potential for co-op success into success itself."

The Vision: To provide funding, technical assistance and mentoring to emerging and early-growth co-operatives at key points in their development.

The Need: We believe that the Fund can meet a specific - and critical - financial need of younger co-ops: to access development capital in a financial environment in which conventional loans are difficult to source, other funding sources are severely limited, and in which the unique structure and benefits of co-operatives are often understood imperfectly, if at all.

 We also believe that the Co-op Momentum Fund can meet additional needs by providing more specialized development support and technical assistance to co-op enterprises. 

The Structure: Conceived as flexible and responsive, the Fund will be set up as a "funders' table." This structure facilitates the tailoring of assistance to meet a combination of specific needs, whether with respect to funding, technical assistance, coaching or mentoring. The Fund would provide successful applicants with grants ranging from $10,000 to $50,000, with the funded activity taking place over a 12-24 month period.

We have been collaborating with Vancity Credit Union on this project for some time and are pleased to say that senior staff members at Vancity have expressed enthusiastic support for the initiative. In particular, we would like to express appreciation to Rebecca Pearson, Manager, Social Enterprise Portfolio, Vancity Capital, for her very helpful participation in the process. 

BCCCA has set the objective of raising $100,000 for the fund over the next several months. In the meantime, we would be pleased to hear comments on this initiative...and, of course, to have your organization's involvement.

We will be providing more information and updates over the coming months. In the meantime, if you would like to talk with us about the Fund, please get in touch with John Restakis, Executive Director, or me. We can both be reached at the BCCA office at 604-662-3906, and we'll be happy to hear from you.   

Rick Marcuse

Category: Community