Sharp Solutions microlending fund launches to boost nonprofits in Vancouver

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      Vancouver entrepreneur Rachel Forbes spies a gap in funding options for nonprofits, charities, and social enterprises.

      “They’re either not eligible for certain types of loans and/or the funding that a lot of nonprofits in particular can go after is very much project-based,” Forbes told the Georgia Straight during an interview at the Union Food Market in Strathcona. “I think that has led to a problem where a lot of nonprofits in particular chase after funding and make projects in response to that funding.”

      Forbes is the 33-year-old founder and principal of Sharp Six Services, a consulting firm. She just launched Sharp Solutions, a microlending fund aimed at helping Canadian nonprofits, charities, and social enterprises increase their capacity.

      Organizations involved with environmental conservation, animal protection, indigenous rights, and electoral reform are invited to apply for loans of $8,000 to $20,000 in order to fund capacity-building initiatives. Forbes said the loans will have interest of six to 11 percent and terms of 18 months to three years, depending on the organization.

      She explained that organizations can spend the money on capacity-building services, such as those offered by her consultancy or other firms. According to Forbes, capacity is the “core nuts and bolts” of an organization.

      “You can do your project work and your client work and whatever,” Forbes said. “But your organization needs good financials, good governance, good internal systems and organization, a sustainable funding strategy, and a way to communicate with people in order for it to grow over the long term and in a sustainable way.”

      In Sharp Solutions’ first round, up to $120,000 will be lent out. Forbes is bankrolling the fund herself.

      “I’m seeing this first cycle of Sharp Solutions loans as basically a pilot to see if it can work, who responds to it, how things go administratively, what kind of difference I can make in these organizations who apply for funding or who are successful in receiving it,” Forbes said. “Then, if it is successful, there’s the potential to take it more broadly and shift up the program a bit and have other people invest.”

      The deadline for loan applications is October 10. Applications will be assessed by Sharp Six and an advisory group. Organizations will find out whether they’ve been accepted for or denied funding by November 6.

      Forbes is a graduate of the University of Victoria and Simon Fraser University, and a former lawyer who worked for West Coast Environmental Law. She started Sharp Six in 2013.

      “I’m excited to see who applies and what we can do with the money,” Forbes said. “I think that’s an interesting, new way to leverage money in this sector.”

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