By 1999, the Nova Scotia government saw that Nova Scotians were making 660 million dollars/year in RRSP contributions. And it also saw that less than 2% of that $660 million was being invested back into Nova Scotian businesses.

In 1999-2000 the co-op model was used to create the CEDIF program in Nova Scotia, as an initiative of the NS Department of Economic Development. A CEDIF involves the Department of Finance, Economic Development and the NS Securities Commission.

• A Community Economic Development Investment Fund, or CEDIF, is a pool of capital raised through the sale of shares that is invested in new or existing local businesses.
• Since the program began, more than 3,500 people have made almost 6,000 investments in CEDIFs.

A CEDIF business such as Northumberland Wind Field Inc. must have at least 6 (of a maximum of 12) directors from the community.

• No investor may own more than 20% of the company
• A business can raise a pool of capital - money - through the sale of shares to persons within a defined community.

CEDIFs help keep investment dollars working in your community. They support locally produced products and services, create jobs and stimulate economic growth.

As an investor, there are several benefits to buying shares in a CEDIF:

• You receive a 35% non-refundable provincial income tax credit on your investment
• Your investment is RRSP eligible; this deduction is in addition to the Nova Scotia Tax Credit
• Shares must be held for a minimum of five years
• You have input into investment decisions by the fund through the board of directors

A CEDIF is managed by a board of directors, which is elected by shareholders. The return on investment is determined by the performance of the business(es) in the fund. The fund will provide shareholders with financial statements and hold an annual general meeting.