If your project fits the Transition Enterprise criteria we encourage you to apply for a Co-op loan.

Before you start—Does your project address any of these Transition Enterprise criteria?

1. Energy — Does your project result in reduced fossil fuel use and/or a reduced carbon footprint? What energy-saving strategies do you or will you employ? Will you use local and recycled materials?
2. Community Health — Does your project contribute to the health and well-being of those it serves and of the island’s ecosystems? For example, if your project uses water, what is your water supply, how will you conserve water and how will you treat wastewater?
3. Localization — Does your project provide local goods or services to local people? Will it consider local sourcing and distribution networks? Does your enterprise work towards building community, complementing and cooperating with other local enterprises?
4. Business Principles — Is your project financially viable? Does it support green and fair trade objectives such as affordable, sustainable products and services and good livelihoods for employees?

Step 1—Contact Us

If your project addresses two or more of the above criteria, please fill out the Borrower Inquiry Form or email us at tssenterprisecoop@gmail.com. 

Step 2—Submit a Letter of Interest or fill out a 2nd questionnaire:

Once the initial contact is made, your project fits the criteria for a Green Loan and you would like to proceed, we ask you to provide either a Letter of Interest or to fill out a second questionnaire. The Board will review your submission. If a motion to proceed with the next step of a loan assessment passes, you will be invited to meet with two board members.

The Letter of Interest should include the following:

• Your name and contact information.
• Name of organization, business or individual applying for financing
• Name of the project.
• Brief description of the project including how it addresses Transition Enterprise criteria.
• Amount of financing requested from the Enterprise Co-op and proposed use of funds.
• Date when funds are required and length of time the funds are needed.

Step 3—Meet with the Co-op Loan Officer(s)

This meeting is your opportunity to explain the project in more detail and learn how TSSEC’s financing works. It also allows the Loan Officer(s) to ask questions about the project. If there is a mutual interest in proceeding you will be asked to supply the following to allow us to fully evaluate your proposal.

• A biographical note outline the skills, training, and experience that you, your partners and/or prospective employees have that will enable you to operate and manage the project.
• For an existing business, the last two years financial statements and balance sheet. For a sole proprietorship a personal net worth statement.
• A short business plan including a cash flow projection that demonstrates financial viability and ability to repay the loan.
• A list of permits, licenses, leases and agreements needed to undertake your business and the steps are taken to obtain them.
• A copy of your recent credit report.
• Three references, two personal and one business. A mentor from the Enterprise Co-op will be assigned to help you if necessary. A Confidentiality Agreement will be signed regarding the sharing of financial and other private information.

Note: Our requirements for NGO will vary slightly. Proof of Board Approval, for example, would be a requirement.

Step 4—Project Approval

This step is complete when you have supplied all information requested by the Co-op. If your project meets the Co-op due diligence criteria, it is brought to the Board for review. If your project is approved, the Co-op will negotiate the terms of the loan with you (interest rate, administration fee, repayment schedule, security etc.).

Step 5—TSSEC Member investment

When the financial terms are agreed upon, Co-op members will be invited to consider participating in the project. This step may take up to two weeks or longer depending on the nature of the project and the amount of funding requested. You will be notified when the funding target is met or if only a lesser amount has been secured. In that case, you have the option of accepting the lesser amount or withdrawing from the process.

Step 6—Legal agreements and other matters

This is the final step before the Co-op issues a loan. You will need to become a member of the Co-op at this point, if you are not already. The Co-op will draw up standard loan documents for signature, and depending on the nature of the project, there may be other documents to sign.

Step 7—Funds issued

When all the paperwork is completed the Co-op will provide you with a cheque. Great! Your project is funded but do not forget the Co-op. We want to hear how things are going. Are things going according to plan? Or if not, are there things that can be done to improve the situation? Let us know.

Step 8—Project monitoring and follow up

The requirements for regular reporting to the Co-op during the term of the loan will be specified in the loan documents. The Co-op is your project partner and we recognize that many of our loan applicants may not be experienced or sophisticated business managers and may benefit from advice and mentorship in the early stages of their venture. Our primary interest is in helping your project succeed—to benefit you, and our community.