Tenacity Works (TW) Fund Emergency loans would be LOANS (patient capital, subordinate to other lenders/ investors, if required, and ahead of member loans). Up to the first 12 months, 3% interest and no principal payments. To be eligible, the co-op will demonstrate that it has applied for (or will apply for) available government programs and other supports, such as rent deferral. It is not necessary to demonstrate receipt, just application
 “Patient Capital” is an investment or financing made to an enterprise by a third party (CWCF) that is intended to have flexible, long-term, affordable repayment terms. In this case, it is an investment by CWCF intended to return its principal plus (below market) interest.
 “Postponement” is a specific legal agreement in cases where two or more lenders have provided financing to an enterprise. Most private/commercial lenders will want to have the repayment of their financing take place before any other lender if the borrower defaults on a loan. If Tenacity Works has provided financing to a Co-op and the Co-op is able to acquire other private financing, then Tenacity Works will postpone the repayment of its loan in favour of the private lender. Subordinate debt is what the Tenacity Works loan has become once it is postponed. It is subordinate to the other lender’s financing.