PRESS RELEASE
For immediate release

$55 Million to Support Quebec’s Social Economy Enterprises

An innovative investment fund will inject new capital to help tackle social and environmental issues

Montréal, June 12, 2024 – The social economy is a model that carries a wealth of solutions for our world’s many socio-economic challenges. This avenue has inspired major actors from the solidarity finance community who want to help create wealth in Quebec through sustainable investments. The Fonds de solidarité FTQ, Fondaction and the Gouvernement du Québec (through Investissement Québec) are reinvesting for the 3rd time in the Chantier de l’économie sociale Trust, the first patient capital fund. Created in 2007 and dedicated solely to collective enterprises, the Chantier Trust is committed to the transition to an inclusive, democratic and sustainable economy in Quebec. In addition, the Chantier de l’économie sociale Trust Fund, a catalyst for impact-hungry investors powered by the government of Canada’s Social Finance Fund, has joined the partners.

A total of $55 million in new capital for social economy enterprises will support their long-term capitalization at key phases of their development by encouraging optimal financial structures. These enterprises, non-profit organizations and co-operatives play a key role in our community development and are helping us reach the sustainable development objectives set by the United Nations. Quebec’s social economy comprises over 11,200 collective enterprises and 220,000 workers in sectors as varied as collective real estate, tourism, services and local media. The combination of their governance models and local grassroots support makes these enterprises ideally positioned to offer collective solutions for collective challenges.

More for Collective Enterprises

The solid outcomes of the past 15 years throughout the province prove that the Trust’s innovative patient capital product has concrete impacts on enterprises. To maximize the leverage effect of this financial solution and increase enterprises’ capacity for success, the maximum investment for real estate projects has been increased from $1.5 million to $2.5 million, and from $250,000 to $400,000 for operations optimization. The terms of these loans were determined in response to collective enterprises’ unique characteristics: capital reimbursement only after 15 years and a fixed annual interest rate for the entire duration of the investment.

“For 15 years, our incredible partners have invested in the Trust’s mission: encouraging the development of Quebec’s social economy enterprises, which have a significant impact on the province’s vitality and the well-being of its communities. Investing in collective enterprises means that we don’t only see positive financial performance, but measurable social impacts as well. The Trust is thrilled to be count on these partners once again, whose investments will transform into concrete and positive impacts on Quebecers’ lives.” Béatrice Alain, President, Chantier de l’économie sociale Trust

“Social economy projects respond to communities’ needs in a sustainable way. With collaboration from Investissement Québec, the government is supporting these enterprises so that they may achieve their full potential while simultaneously contributing to the socio-economic vitality of our regions.” – Christopher Skeete, Minister for the Economy, Minister Responsible for the Fight Against Racism, Minister Responsible for the Laval Region

“With the strength of its expertise and network of partners, the Chantier de l’économie sociale Trust has been contributing to the socio-economic vitality of every region in Quebec since 2007. The Fonds de solidarité FTQ is reinvesting $18 million into the Trust so that it may continue its work with social economy enterprises that contribute to Quebec’s sustainable development through its participation in financing impactful projects,” announced Saloua Benkhouya, Vice-President, Private Equity and Impact Investing  – Services, Fonds de solidarité FTQ. We note that this investment from the FTQ counts towards its objective of reaching $12 billion in assets connected to sustainable development by May 31, 2027, as the Trust only supports enterprises from the social and solidarity economy.

“Finance should be working towards the transformations we need to bring the economy of the future into reality. At Fondaction, we know that the enterprises and projects that are doing good things today will be resilient tomorrow.” Claire Bisson, Vice-President and Head of Investment, Fondaction

“In the face of mounting challenges, it is crucial for social economy enterprises to be able to scale their solutions. Increasing the fund is a concrete way to support them in this work. The support from the Chantier Trust provides this possibility of being a vector for change at scale within the social economy. The investors who are part of the Trust Fund believe in this democratic and inclusive approach to financing.” Patrick Duguay, President of the Chantier de l’économie sociale Trust Fund

About

The Chantier de l’économie sociale Trust is the first social trust dedicated to social economy financing. For 15 years, it has invested over $137 million to support 357 collective projects through its patient capital loans and specialized funds. The creation of these distinctive financial products was made possible through the trust of its 14 investment partners. As a financial intermediary, and with its ongoing goal to diversify and expand financing options for collective enterprise development, it strives to put forth innovative solutions that will optimize these projects’ financial circumstances.

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Contact
Dominique Dupont
Responsable des communications
Fiducie du Chantier de l’économie sociale
communication@fonds-risq.qc.ca
438-526-2355