A CEDIF is a pool of capital which is raised from individuals within a community to operate or invest in a local business. Any individual or group can form a working group to investigate the possibility of starting a CEDIF in their community. A CEDIF need not be large at its formation. A small initial offering followed by annual, or semi-annual offerings can quickly grow to be a substantial capital pool for local investments.
Many individuals are investing in stock market holdings, RRSPs, GICs, Canada Savings Bonds, savings accounts, etc. While all can earn a return, these investments are all likely taking place outside of Newfoundland and Labrador. CEDIFs are designed to channel funds into productive investment within the communities of the investors, which would provide an important source of capital for many local businesses. This, in turn, would strengthen the local economy and that of the province. Funds are controlled by a local group of officers and directors, who may be chosen by the founders and promoters of the CEDIF or by the CEDIF’s investors at an annual general meeting. CEDIFs can help communities invest in green businesses and green projects that impact them.