for creating worker cooperatives, social cooperatives, and for worker buyouts of firms that are in trouble or that have retiring owners, especially for traditional businesses that require extra financial assistance while transitioning or converting into cooperatives. Originally, this state investment was equivalent to three times the collective internal capital account investment from workers. As of 2001, the state investment is on a 1:1 ratio with workers' capital contributions. Canadian worker cooperatives also rely on government funding to finance their early development. State sources of finance, which often come in the form of grants, include the Quebec Local Development Centre, the Co-op Development Initiative, and the Young Entrepreneurs program. Financing via Traditional Business Transitions When the owner of a traditional business decides to resign and transition the ownership of the firm into a workers' cooperative, they often provide initial financial investment. However, this typically is not a sustainable form of capital investment and cooperatives often use it to begin business and then transition to depend on other forms of finance. Examples of this method of financing include Select Machines, Inc., Metis Construction, A Slice of New York, and Rock City Roasters. The transition process often takes several years and is executed in 5 stages. First, the selling owners must evaluate if a transition is an appropriate step for the business and must consult with advisors and employees regarding new leadership changes. Second, the selling owner must employ specialists to determine the legal and financial logistics of the transition. Third, a transition group or the selling owner must organize the new managerial structure, business practices, and ownership policies. Fourth, legal contracts are signed to establish the new management while methods of finance are drawn upon to jumpstart the newfound cooperative. Fifth, an adjustment period occurs in which training is provided for workers regarding new business policies. External Finance Firm Investment Most finance firms that specialize in providing capital for worker cooperatives are Cooperative Funds and Community Development Financial Institutions (CDFI's). CDFI's often do not supply the majority of finance for cooperatives, but act as collateral for other forms of investment and/or as support for another form of finance. Additionally, many cooperatives utilize external finance for improvements to their physical capital in order to improve productivity. Several U.S. CDFIs include the Cooperative Fund of New England, the Common Wealth Revolving Loan Fund, the Shared Capital Cooperative of Minneapolis, and Capital Impact Partners. In