About the Business
Carmina de Young Fashion Design Inc. (CDY) is a leader in Canadian made sustainable fashion. With environmental sustainability at the core of its business values, this female-led social enterprise uses natural fibers such as bamboo, modal, hemp, linen, and organic cotton. These fabrics have the Global Organic Textile Standard (GOTS), which means they require minimal pesticides and water for production and are sourced from responsible working conditions. Up through year-end 2019, designer Carmina de Young’s collections were geared towards women’s fashion. However, with the onset of COVID-19, CDY’s operations pivoted to manufacturing personal protective equipment (PPE). Under the new brand of CY Health, CDY’s production of PPE helps meet Canada’s high demand of medical isolation gowns for healthcare professionals.
About the Loan
CDY’s Lifecycle PPE project won a grant through NGen’s Strategic Supply Challenge, which tested organizations’ use of manufacturing technologies to build sustainable Canadian products in the fight against COVID-19. This grant would award the organization and its partners $2 million in federal funding to increase its production. However, to get access to the $2 million grant, CDY had to provide half of the funding since NGen would cover 50%. To help CDY gain access to the grant, VCIB provided a $250,000 revolving line of credit to help with the financing. VCIB also offered a $50,000 term loan to back the purchase of equipment and help hire more production workers to increase the organization’s manufacturing capacity.
About the Impact
The apparel industry is responsible for 10% of global carbon emissions, more than all international flights and maritime shipping combined. CDY is making a radical change in the industry by becoming the first company in Canada that manufactures sustainable PPE, both disposable and reusable. VCIB’s loan has helped increase the organization’s production from 1,000 reusable medical gowns and 4,000 disposable medical gowns, to 1,200 reusable gowns and 20,000 disposable gowns per week. This recycling project is expected to achieve 30% less CO2 gas emissions and 93% less solid waste generation at healthcare facilities. VCIB’s financing has also supported CDY in expanding her team. By the end of 2021 the organization hopes to create 50 new jobs to assist with increased production. The majority of employees hired by the organization are individuals who have faced employment barriers, such as new immigrants, single mothers, and recent college graduates.
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