WATCH: The Carrot grocery store opened last year after winning the top prize of 115-thousand dollars from “Aviva insurance” to start a grocery store in an area which was known as a “food desert”. Global’s Ray Bradshaw gives up some insight into how you can help.
HALIFAX – The Community Carrot Co-op, a grocery store that opened last year on Gottingen Street after winning $115,000 in a community funding competition, is looking for investors.
The Carrot has been growing steadily ever since its doors opened in October 2014, but now needs a little extra help.
“It’s not necessarily that we need the extra cash per se, we’re looking for equity to offset our debt balances,” said Russell Cooper, who spoke on behalf of the business.
The Carrot purchased the building, so the mortgage is its largest debt. To help make the store sustainable, it’s looking for “investors” through a Community Economic Development Investment Fund (CEDIF).
The CEDIF is designed to channel equity into local businesses that have a social impact. The store is offering shares at $100 each, which will help secure its long-term future.
“We’ve been seeing six to seven per cent revenue growth, which is meeting or exceeding expectations,” said Russell.
The store says it has earned more than $330,000 in revenues since opening and has signed up more than 800 members at $25 each.
Besides helping the business, the fund will also give investors a tax credit. A $1,000 investment will give a $350 tax credit for the year.
Laurie Cameron, CEO of the Centre for Entrepreneurship and Development, said that might appeal to people looking for socially aware enterprises to invest in.
“Folks within a community that believe very strongly about a project and really want to get behind and back the owners or the concept,” she said. “Obviously there’s always risk when you do an investment, but it’s a great way of empowering organizations that perhaps have a social approach to things.”
Any Nova Scotia resident qualifies for the equity tax credit. The closing date to reach the $75,000 goal is June 30.
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