Frequently Asked Questions about Investment Shares:
What’s an investment share?
An investment share with Peg City Car Co-op is an investment in the future of a locally owned co-operative business. Essentially, it is a temporary monetary contribution to help us raise the necessary funds to expand our services. This ability to expand means the ability to serve more members, and in turn, increase revenues.
How much does it cost?
An individual share is $100. The minimum purchase is 1 share and the maximum purchase is 200 shares or 10% of the total value of shares sold.
What is this 30% tax break all about?
Residents of Manitoba that invest in eligible community-based enterprises (like Peg City Car Coop) can claim that investment on their personal income taxes and the Province will provide a credit of 30% of their total investment. (Similar to the credit you can receive for making a charitable donation.) The tax credit an be applied to the tax year of your choosing up to 3 years previous or 10 years forward.
Does it pay dividends?
Investments will earn dividends of up to 5%. The actual percentage will be determined by our board of directors based on the financial standing of the co-op at the time your shares are repaid. Plus, your investment is already eligible for the 30% tax credit as described above.
When and how do I get my money back?
Your investments must remain with the co-op for a minimum of 3 years. The planned repayment schedule calls for the shares to be returned at 25% per year starting in January 2016. (For example, if you purchase $1000 of shares today, you will receive $250 back in January 2017, $250 in 2018, $250 in 2019 and $250 in 2020 along with any interest that is paid). This schedule is subject to change based on the financial position of the co-operative.
Is my money safe with you?
Yes. As with any investment, there is an element of risk, but Peg City is confident that we will be able to adhere to our repayment schedule.