Canada’s Social Finance Fund to Launch by 2021

On April 4, 2019 Senator Omidvar asked the Government Representative in the Senate, Senator Peter Harder when Canada’s social finance fund would be fully operational. The fund was announced in Fall Economic Statement in 2018, with further details offered in Budget 2019. Here is the full video and transcript of the exchange during Senate Question Period: 

Watch: Canada’s social finance fund to launch by 2021

Hon. Ratna Omidvar: Honourable senators, my question is for Senator Harder, the Government Representative in the Senate.

I would like to turn our attention to Budget 2019. When you read through that — and I won’t pretend I have read through every item, but one item caught my eye, and it relates to the creation of a $755 million social finance fund. I want to point out to colleagues that in some small part it was the result of a special Senate study conducted by the Social Affairs Committee. It is indeed wonderful.

I think it is wonderful when our aspirations are given a legislative foundation and there is money attached to it, but there are a lot of Canadians who are very impatient to see the social finance fund up and running.

Can you tell us when we can expect to see the fund operational? Can you share with us which government department will hold the key responsibility in managing the rollout of the fund?

Hon. Peter Harder (Government Representative in the Senate): Again, I thank the honourable senator for her interest and for her reference to the good work of the Senate on this subject matter.

Obviously, it is one that the Senate cannot uniquely take credit for. There was, as the Senate will know, a co-creation steering group composed of 16 stakeholder interests and one government official to make recommendations with respect to the creation of the SISF strategy.

A number of key departments participated. They conducted consultations, both targeted and online, as well as community sector consultations. The Fall Economic Statement first proposed to make available up to $755 million on a cash basis over the next 10 years to establish this fund, the SFF. Additionally, the government proposed to invest $50 million over two years in investment and readiness screening for social purpose organizations to improve their ability to successfully participate in social finance marketing.

Budget 2019 recommits to the funding on the investment readiness stream and provides additional details on the social finance fund. A $50 million investment made through the social finance fund is being proposed for the Indigenous growth component of the fund, and a minimum of $100 million will be allocated towards projects that support greater gender equity.

Funding will be managed through professional investment managers, with expertise on social impact reporting and a proven ability to promote inclusive growth and diversity in social finance.

Budget 2019 clarified that the fund would be delivered, as I say, through professional managers. The government expects the fund to be operational, and competition is already under way to put in place the managers of the fund. The target date for starting is 2020-21. The Government of Canada, through ESDC, which is the department most closely associated with the fund, will put in place the appropriate accountability systems with respect to the fund manager.