Vancouver – Canada’s economy is strong and growing, with more jobs and opportunities for the middle class, and for people working hard to join it. There are more good, well-paying jobs for Canadians, wages are growing, consumer confidence is strong and business profits are up – good news for Canadians and the communities they call home.
Today, Minister Duclos was in Vancouver to highlight the Fall Economic Statement 2018, which updates Canadians on results already delivered by the Government’s investments, and lays out the next steps in the Government’s plan to grow the economy by investing in middle class jobs.
In the Fall Economic Statement 2018 the Government of Canada proposes to support innovative solutions to some of Canada’s big challenges through a Social Finance Fund that will give charitable, non-profit and social-purpose organizations access to new financing and connect them with non-government investors. The Social Finance Fund is expected to help create thousands of jobs, foster economic growth, and help build a more equal and fair Canada.
The new Social Finance Fund is a significant first step towards ensuring community organizations are provided with new tools and funds they need to solve the big challenges they are facing, such as the opioid crisis, homelessness, and long-term unemployment.
“Our government recognizes that new approaches are needed to address challenges that make it difficult for some Canadians to succeed and reach their full potential. We have to ensure that charities, non-profit, and social-purpose organizations have access to money they need to make a real and concrete impact in the day-to-day lives of Canadians. There’s no time better than now to look to innovative approaches to fulfill our commitments of building a more equal, generous, and sustainable Canada. With this fund, our aim is to empower the people and organizations whose primary objective is to make our communities better.”
– The Honourable Jean-Yves Duclos, Minister of Families, Children and Social Development
“We’re making sure that every Canadian has an equal and fair chance at success. The 2018 Fall Economic Statement represents the next step in the Government of Canada’s plan to strengthen and grow the middle class and offer real help to people working hard to join it. The Social Finance Fund will create good quality jobs for Canadians, with up to 100,000 opportunities expected over the next 10 years.”
– The Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour
- The Government intends to invest $755 million over the next 10 years to establish a Social Finance Fund.
- An additional $50 million over two years to help social purpose organizations will improve their ability to successfully participate in the social finance market.
- The proposed Social Finance Fund could generate up to $2 billion in economic activity and help create as many as 100,000 jobs over the next decade.
The Social Finance Fund
To encourage innovative approaches to persistent and complex social challenges, the Government of Canada is creating a Social Finance Fund. This will give charitable, non-profit and social purpose organizations access to new financing to implement their innovative ideas, and will connect them with non-government investors seeking to support projects that will drive positive social change.
To help accelerate that change, the Government proposes to make available up to $755 million on a cash basis over the next 10 years for a new Social Finance Fund and an additional $50 million over two years for social purpose organizations to improve their ability to successfully participate in the social finance market.
The proposed Social Finance Fund could generate up to $2 billion in economic activity, and help create as many as 100,000 jobs over the next decade. In addition to these measures, the Government will continue to work on exploring other recommendations from the Steering Group’s report.
Co-Creation Steering Group
In June 2017, the Government of Canada created a Social Innovation and Social Finance Strategy Co-Creation Steering Group, primarily comprised of experts from the charitable and non-profit sector, to provide recommendations on the development of a social innovation and social finance strategy.
The Steering Group delivered its final report, Inclusive innovation: New Ideas and New Partnerships for Stronger Communities, in August 2018.
One of the report’s key recommendations was to create a Social Finance Fund to help close the capital financing gap faced by organizations that deliver positive social outcomes, and to help accelerate the growth of the existing social finance market in Canada.
Budget, Fall Economic Statement
Source: Employment and Social Development Canada