As a notice to our clients and contacts, Stosic & Associates (“S&A”) is reporting on an announcement made this morning in Toronto, ON by the federal Minister of Finance, Hon. Bill Morneau and 13 of Canada’s major international banking and insurance institutions of a new $500M fund designed to help Canada’s Small to Medium Sized Businesses.
Here is what we know from today’s announcement:
- Funding will range from between $3M and $20M per project/applicant;
- Details of the Fund will be forthcoming, however, early indications are that it will following the guidance of other government programs in supporting export development, productivity enhancement, innovation, and of course job growth;
- While $500M will be the investment for the initial program, there is a commitment to grow this to $1B should the model prove successful;
- The program will operate as an independent entity, with a board made up of representatives of the financial institutions taking part;
- The Fund will be pan-Canadian, and will be promoted through dedicated offices in each Province;
- The Fund is currently looking to appoint an independent Chair with the intention of rolling out funding to successful proponents within the next 12 months.
This marks one of the first times (if not the first time) that competing banks and insurance companies have partnered to offer a dedicated private sector funding program. Traditionally, business support subsidies are created and managed by government. Minister Morneau’s participation in the announcement this morning suggests that this is a trend that government would like to see more of.
S&A clients and contacts are encouraged to monitor developments around this Fund, and where possible, interface with administrators as early as possible in order to help them set advantageous parameters, and to pre-position your organization for funding when the official launch happens later this year.
As always, S&A is here to provide any additional information, help integrate your organization into the appropriate channels, and position you for success.