Awqaf London Community Fund
Ethical capital for Muslim entrepreneurs and small businesses to grow and prosper.
A capital system that leaves many behind
Small businesses are the foundation of Canada's economy, but the conventional financial system does not work for everyone. Its reliance on interest-based debt creates an ethical barrier for Canada’s growing Muslim community and a risk barrier for many other business owners.
Entrepreneurs seeking to avoid debt, whether for reasons of faith or because they have seen the negative impact of predatory loans, are often left with no options. This limits economic participation and slows the growth of promising local businesses.
A Shariah-compliant, interest-free fund built to serve entrepreneurs like:
The Skilled Trades Professional
A master electrician with ten years of experience wants to buy two used service vans and hire an apprentice. He has a strong business plan but is unwilling to take on an interest-based loan. He needs an asset-based financing partner to help him expand his fleet and create a new job.
The Established Retailer
A mother of three runs a successful furniture store. She has an opportunity to get a significant discount by purchasing inventory in bulk but needs $200,000 in working capital. A conventional line of credit is not an option. She is looking for an ethical, short-term financing solution to manage her supply chain and grow her margins.
The Community Daycare Provider
An experienced educator is ready to open a second daycare location. The business model is proven and profitable. Instead of debt, she seeks an equity partner to share the risk and reward of the expansion, ensuring the new centre is built on a foundation of shared community investment.
A community capital model for shared prosperity
The Islamic Community Capital Fund is a new, community-led fund in Canada using the principles of Islamic finance to close this capital gap. We are working with the Awqaf Foundation in London, Ontario, to explore how our asset-backed, risk-sharing models can support small businesses and their families.
Inspired by the Boston Impact Initiative, our model is built on trust and partnership. We offer integrated capital: a blend of flexible financing and non-financial support, connecting entrepreneurs with coaching and mentorship through the networks of our community partners.
Our work is guided by five foundational values rooted in Islamic principles. These ensure our financing is not only financially sound but also ethically robust and socially impactful.
Stewardship & Social Justice: We act as stewards of community capital (Amanah) and ensure fairness (Adl) in all our partnerships.
Community Well-being: We are dedicated to promoting the public good (Maslaha) and the principle of doing no harm (lā ḍarar).
Ethical & Productive Enterprise: We invest in the real economy, avoiding speculation (Maysir) and focusing on tangible, productive business activities.
Partnership & Shared Risk: Our financial relationships are built on equity (Qist) and the principle that gain accompanies risk (Al-ghunm bi-l-ghurm), creating true partnerships where risk and reward are shared.
Transactional Integrity: Every agreement is a binding covenant ('Aqd) that must be free from exploitation (Riba) and grounded in transparency and mutual respect.
Our Ethical Financing Tools
We are starting with a $500,000 pilot fund in London, Ontario, to test a model of community-based, ethical finance that can be adapted to strengthen local economies across the country.
We offer flexible, non-interest-based financing products designed as partnerships, not just transactions.
Partnership vs. Debt
Our approach is fundamentally different from a bank loan. Conventional debt requires repayment regardless of your business's performance. Our partnership models are built on shared risk and success. We invest in your business's assets or growth, which means we have a stake in seeing you succeed.
Leasing to Own (Ijarah)
What it is
The fund purchases a larger asset (like a vehicle or equipment) and leases it to your business. At the end of the term, ownership can be transferred to you.
How it helps
This product serves entrepreneurs like the skilled trades professional who needs to acquire service vans to expand his business without taking on conventional debt.
Cost-Plus Financing (Murabaha)
What it is
The fund purchases assets (like inventory or supplies) for your business and sells them to you at a modest, agreed-upon markup. You repay the total cost over a set period.
How it helps
This allows the established retailer to purchase inventory in bulk to get better pricing, smoothing her cash flow and improving her profit margins.
Equity Partnership (Musharakah)
What it is
The fund co-invests with you in a project or business expansion. We become partners, sharing in the profits and the risks according to a pre-agreed ratio.
How it helps
This serves the community care provider who wants a partner to help fund a new daycare location, sharing in the journey and the success.
Capacity Building Grants
What it is
We provide non-repayable grants, in partnership with philanthropic funders, to help early-stage entrepreneurs cover costs like certifications, training, or startup readiness.
How it helps
This can help a new entrepreneur get the certification needed to launch their business on solid footing.
Why London?
We are launching this national model in London because it is home to one of Canada’s oldest Muslim communities, with a strong network of trusted institutions.
A Growing Community: London's Muslim community represents 8.4% of the city's population and is a key part of its economic and social future.
Deep Community Roots: Leaders like the Awqaf London, London Muslim Mosque, and the Muslim Wellness Network bring decades of trust and connection to the entrepreneurs we serve.
A Place of Resilience: This initiative is a community-led response to a tragic, hate-motivated attack in 2021, building belonging and shared economic strength.
A National Blueprint: By testing the model in London, we aim to create a replicable approach that can strengthen local economies across Canada.
Join us
This work requires a community of partners. Whether you are looking to invest capital, grow your business, or share your expertise, there is a role for you.
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Support the development of ethical finance in Canada. Your support in our pilot fund can generate social and financial returns and help build a replicable model to scale nationally.
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Help us design the financing product that works for you.
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Are you an expert in Islamic finance, community finance, or small business management? We are building a network of advisors to support our work and our entrepreneurs.
New Power Labs is a mission-oriented nonprofit dedicated to expanding access to capital for underfunded and overlooked communities through research and collective action. New Power Labs collaborates with capital deployers across the full capital spectrum, from philanthropy to impact investing to venture capital and bank financing, leveraging research and data benchmarks to shift their policies and practices, and to catalyze system-wide change.
About us
Awqaf London is dedicated to promoting community improvement through Islamic endowments (awqaf). It focuses on supporting local initiatives, sustainable development, and social responsibility in London, Ontario, through the Islamic tradition of charitable giving.
Acknowledgement
This work is made possible through the generous support of our funding partner, the Ontario Trillium Foundation.