VCIB launches GIC with lower threshold for business investors

The investment vehicle will fund loans for organizations impacted by the COVID-19 pandemic

VCIB launches GIC with lower threshold for business investors
Steve Randall

A new investment opportunity has been launched by Vancity Community Investment Bank (VCIB) to help organizations affected by the coronavirus pandemic.

The Schedule 1 chartered bank has launched a Unity Guaranteed Investment Certificate (GIC) offering a non-redeemable 12-month term at a 3.00% interest rate.

It is only available to Canadian businesses, non-profits, and charities, rather than to individual investors. But unlike the bank’s other GIC products, the investment threshold is $25,000 rather than $50,000, with a maximum investment cap of $250,000.

The investments raised through the GIC will fund loans and other financial relief to businesses and non-profits impacted by the COVID-19 crisis.

“Our mission has always been to use the tools of finance to drive immediate and lasting social and environmental change in communities across Canada. This mission has never been more important than it is right now, when businesses and community organizations are having to make difficult choices to keep their doors open,” said Jay-Ann Gilfoy, Chief Executive Officer at VCIB.

Vancity term deposit
The new VCIB GIC builds on the similar model used by the bank’s parent company, Vancity, for its recently-launched Unity Term Deposit which this week reached its $200 million goal from the credit union’s members in British Columbia.