Social Economy – Financing and Technical Resources

The purpose of this Info-Guide is to provide you with information about the social economy-related financing programs and resources made available to you by the federal and provincial governments, the private sector, and certain non-governmental organisations.

In addition, we suggest you consult our document  Financing a Business which contains the main financial assistance programs related to business start-up, expansion, export and innovation.

TABLE OF CONTENTS

1. Definition of social economy definition
2. Financial assistance programs
3. Technical resources

1. Definition of social economy

Separate from the private sector and government, the social economy includes co-operatives, foundations, credit unions, non-profit organisations, the voluntary sector, charities and social economy enterprises. These enterprises are run like businesses, producing goods and services for the market economy, but manage their operations and redirect their surpluses in pursuit of social and environmental goals.

2. Financial assistance programs

AccèsLogis Québec
AccèsLogis Québec is a financial assistance program that promotes the coordination of public, private and community resources to build social and community housing for low- and moderate-income households and clients with special housing needs. For more information, call 1-800-463-4315 or visit http://www.habitation.gouv.qc.ca/en/programmes/acceslogis.html

EcoAction – Environnement Canada
EcoAction is a program that encourages Canadians to take action in their communities in support of healthy environments. EcoAction encourages projects that protect, rehabilitate or enhance the natural environment, and build the capacity of communities to sustain these activities into the future. The deadlines for applying are February 1 and October 1 annually. The maximum funding available is $100 000. The program will provide only up to 50% of eligible project costs (this 50% represents all federal funding, including EcoAction). For more information, consult our document EcoAction Community Funding Program, call 418 648-3537 or 1-800-463-4311, or visit http://www.ec.gc.ca/ecoaction/what_is_e.html

Crime Prevention Action Fund
This fund supports crime prevention initiatives in communities large and small. It aims to build partnerships between the private, voluntary, policing and community health sectors to enhance community capacity to prevent crime through social development. For more information, call 514 283-2018 or 1-877-302-6272, or visit http://www.psepc-sppcc.gc.ca/prg/cp/cpaf_index-en.asp?lang_update=1

Fonds de développement des entreprises d'économie sociale (FDEÉS) –  Centre local de développement (CLD) 
This fund aims to promote the emergence of viable projects within social economy companies and to support the creation of long-term jobs by offering them financial support. This financial support will be paid in the form of a grant. The amount of financial support will be determined by the CLD. Moreover, the combined financial support from the Québec and Canadian governments and the CLD may not exceed 80% of the eligible expenses. For more information, contact your regional CLD (see the Entrepreneurship Assistance document for your region) or visit http://66.36.242.105/acldq.qc.ca/francais/cld/econosocial.php  (In French only)

Co-operative Development Initiative (CDI) – Co-operative Secretariat
The Co-operative Development Initiative (CDI) is a program designed to enhance the quality of life in Canada through supporting the development of co-operatives in areas of federal priority. CDI funding will help to pay for the costs of implementing a project. The expected funding range for individual projects is between $5000 and $75 000 per year. Multi-year projects of up to five years may receive funding, but must be completed by the time the program ends on 31 March, 2008. Applicants or their partners in the community are expected to contribute at least 25% of the total project costs. For more information, consult our document Co-operative Development Initiative (CDI), call 1-888-781-2222, or visit http://coop.gc.ca/index_e.php?s1=init&page=intro

Fiducie du Chantier de l'économie sociale
The Fiducie du Chantier de l'économie sociale was created to further the expansion and development of collective enterprises by making it easier to secure financing and by ensuring that social businesses are better capitalized. To this end, it offers loans with a 15-year moratorium on capital repayment. This "patient" capital helps fund operations and can be invested in properties that can be used to develop new activities. The Fiducie will fund start-ups and social projects but does not provide funding for turnaround activities or refinancing. For more information, call 514 256-0992 or visit http://fiducieduchantier.qc.ca/?lang=eng

Programme d’aide financière aux entreprises d’économie sociale oeuvrant dans le cadre des plans de gestion des matières résiduelles – Recyc-Québec
This program aims to promote the participation of social economy companies in reaching the environmental, social and economic objectives. The objectives are to support projects to recover, reuse and reclaim residual matters generated by industries, businesses and institutions. Financial assistance is paid in the form of non-refundable contributions and may not exceed $10 000 for the formulation of business plans (component 1) and $200 000 for the establishment, consolidation, or expansion of a social economy company (component 2). Applications for assistance must be filed by February 1, June 1, and October 1 each year. For more information, call 514 352-5002, 418 643-0394 or 1-866-523-8290 extension 3247, or visit http://www.recyc-quebec.gouv.qc.ca/client/fr/programmes-services/information/ProgEco_soc.asp (In French only)

The Community Economic Development Technical Assistance Program (CEDTAP)
CEDTAP offers support to mature community economic development organisations and to community-based organisations emerging in the community economic development field. Eligible organisations include co-operatives, community development corporations, community loan funds and other non-profit organisations. Contributions from CEDTAP can vary from $3000 up to a maximum of $20 000. To qualify for CEDTAP support, an organisation must demonstrate that it can commit to making a cash contribution of 20% towards the technical assistance fees. For more information, call 613 520-2600, extension 8680, or visit http://www.carleton.ca/cedtap/home/index_e.html

Contributions Program – Consumer Connection – Industry Canada
The objective of this program is to strengthen the consumer's role in the marketplace through the promotion of timely and sound research and analysis, and the financial self-sufficiency of consumer and voluntary organisations. Canadian non-profit consumers and voluntary organisations working in the consumer interest are eligible for assistance under this program. For more information, call 613 952-2771, or visit http://strategis.ic.gc.ca/epic/internet/inoca-bc.nsf/en/h_ca00175e.html

Group Entrepreneurship Program – Investissement Québec
This program is designed to foster the creation, maintenance and development of social economy enterprises by providing financial assistance for non-profit organisations, cooperative enterprises or their subsidiaries. In general, the financial assistance will consist of a guarantee for the repayment of the net loss on a loan made to an eligible enterprise by a financial institution. The repayment guarantee may reach 66 2/3% of the net loss on a line of credit or 75% of the net loss on a loan, letter of credit or any other financial undertaking. The total financial assistance granted to fund a project may not exceed 75% of the said project. For more information, call 1-866-870-0437 or visit http://www.investquebec.com/en/index.aspx?page=1291

Financial Assistance Program for Domestic Help Services (FAPDHS) – Ministère de la Santé et des Services sociaux
The objectives of the FAPDHS are to develop a solid network of home care services enterprises and to encourage people to obtain home care services through these firms. Persons using domestic help services provided by a domestic help social economy business that has been accredited for program purposes may receive financial assistance applicable against the hourly rate the business charges. For more information, call 514 873 9504 or 1-888-594-5155, or visit http://www.ramq.gouv.qc.ca/en/citoyens/contributionetaidefinancieres/
exonerationaidedomestique.shtml

Financial support program for government orientations on community action and volunteer action – Secrétariat à l'action communautaire autonome du Québec (SACA)
The Fonds d’aide à l’action communautaire autonome (FAACA) ensures financial support to organisations and umbrella groups within the framework of this program which has three phases:

• Phase 1: Financial support for group advocacy organisations;
• Phase 2: Financial support for the mission of multisectorial organisations under SACA.

For more information, call 418 646-9270 or 1-800-577-2844, or visit http://www.mess.gouv.qc.ca/saca/programmes/index_en.asp

Support for Early Childhood Centres – Ministère de la Famille et des Aînés
Persons who operate a registered childcare service have certain advantages; more specifically, the right to grants for the care of children under the age of 18 months and handicapped children. They can offer parents reduced rate, as well as exemptions and financial assistance for those eligible for these programs. For more information, call 418 643-4721 or 1-888-643-4721, or visit http://www.mfacf.gouv.qc.ca/thematiques/famille/aide-financiere/services_garde_en.asp

Subvention salariale d'insertion en emploi – Ministère de l’Emploi et de la Solidarité sociale
This program, administred by the centres locaux d'emploi (CLE) [Local Employment Centres], offers a subsidy to existing businesses who are interested in hiring a social security or employment insurance recipient. The program is available to cooperatives and both non-profit and profit companies, located in Québec. The duration of the subsidy lasts up to 52 weeks for social economy businesses. For more information, contact your CLE (see the Entrepreneurship Assistance document for your region) or visit http://emploiquebec.net/francais/entreprises/recrutement/aide/chomage.htm (In French only)

Venture Capital

Réseau d'investissement social du Québec – RISQ
RISQ is a fund for social economy businesses intended to support collective entrepreneurship. Its mission is to create access to funding tailored to social economy businesses. It is intended to support the start-up or expansion of collective businesses that are socially cost-effective and economically viable, through two action components: capitalisation loans and technical assistance. For more information, call 514 866-2355 or 418 525-5526 extension 2111, or visit http://www.fonds-risq.qc.ca

Investissement en entreprise – Fondaction (CSN)
Fondaction invests part of its assets in Quebec enterprises, mainly those in the following three categories: enterprises involved in a participative management process (thus taking direct action on democratisation of the workplace), controlled by the workers (co-operatives or others) and those with concern for the environment. For more information, call 514 525-5505 or 1-800-253-6665, or visit http://www.fondaction.com/entreprise/conditions.php (In French only)

Fonds de financement coopératif
Fondaction, the RISQ and Filaction, are joined together in the provisioning and management of the Fonds de financement coopératif, a source of financing for entrepreneurs in social economy businesses. The Fonds de financement coopératif meets the financing needs of social economy businesses for amounts ranging from $100 000 and $250 000. For more information, contact Filaction at 418 522-3334, extension 101, or visit http://www.filaction.qc.ca/FFC/indexHTM.htm (In French only)

Desjardins Capital régional et coopératif
Desjardins Capital régional et coopératif associates itself with companies and cooperatives that are able to provide well-elaborated business plans and assists experienced entrepreneurs, visionaries with integrity, in formulating their business strategies, recruiting management personnel and experienced administrators, and in the development of strategic relations with business and financial partners. He also supports cooperatives undertaking projects that bring development or growth. For more information, call 1-888-522-3222 or visit http://www.capitalregional.com/En/index.asp

3. Technical Resources

Consult the Entrepreneurship Assistance document for your region to find out about local organisations that can help and inform you.

Le Chantier de l'économie sociale
The mision of this non-profit organisation is to promote social economy at the national level, support consolidation, experimentation and development of new niches and projects, coordinate the efforts of the various stakeholders, and work to create and stabilise sustainable jobs. The Chantier brings together major social movements, local development stakeholders and social economy business promoters. For more information, call 514 899-9916, 1-888-251-3255 or visit http://www.chantier.qc.ca (In French only)

Comité sectoriel de main-d'oeuvre (CSMO) Économie sociale et action communautaire (ÉSAC)
This non-profit organisation works to create and implement development and training strategies for the labour force and sector enterprises and organisations through the promotion and consolidation of sectoral co-operation and partnership. For more information, call 514 259-7714 or 1-866-259-7714, or visit http://www.csmoesac.qc.ca (In French only)

Canadian Social Economy Hub
The Canadian Social Economy Hub (CSEHub) undertakes research as needed in order to understand and promote the Social Economy tradition within Canada and as a subject of academic enquiry within universities. http://www.socialeconomynetwork.ca/hub/?p=1&lp_lang_pref=en

Infrastructure Canada
Infrastructure Canada was created, as a new department within the federal government, to manage and lead the federal participation in the development and implementation of a long-term strategy to meet Canada 's modern infrastructure needs. An important part of its mandate is to co-ordinate and manage current infrastructure funding programs and to provide strategic advice and carry out research on related matters. For more information, consult our document Infrastructure Canada - Mandate, call 1-800-622-6232 or visit http://www.infrastructure.gc.ca

Guides de gestion – MDEIE
These guides may be used as independent study tools or in conjunction with the training provided by the MDEIE. http://www.mdeie.gouv.qc.ca/page/web/portail/entreprises/
nav/economie_sociale/42267.html?iddoc=42267  (In French only)

Guide for Analysis of Social Economy Enterprises – Réseau d’investissement social du Québec
This guide is a reference tool providing detailed information about how to analyse every aspect of a community enterprise and suggesting ways to assess the success conditions of these enterprises. This guide is available in our documentation centre.
For more information, call 514 866-2355 or visit http://www.fonds-risq.qc.ca/

Brochure on Capitalisation des entreprises de l'économie sociale (In French only) 
http://www.investquebec.com/documents/fr/publications/BrochureCapitalisation_fr.pdf 

Observatoire en économie sociale
http://www.uqo.ca/observer/Socialquebec/accueil social Quebec.html (In French only)

In conclusion

We hope the information provided in this Info-Guide has been helpful to you. Many other interesting documents, tools and links may be found on our Web site.

If you need more information about business-related subjects, our agents are available to provide you with free information about federal, provincial, and municipal government programs, services, and regulations as well as some programs and services offered by the private sector.

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Don’t hesitate to contact Info entrepreneurs at 514 496-4636 or Ressources Entreprises at 418 649-4636. In the regions, call 1-800-322-4636.

• Entrepreneurship Assistance – Saguenay Lac Saint-Jean (Region 02)
• Entrepreneurship Assistance – Abitibi-Témiscamingue (Region 08)
• Financing a Business
• Entrepreneurship Assistance – Montreal (Region 06)
• Entrepreneurship Assistance – Mauricie (Region 04)
• Entrepreneurship Assistance – Laurentides (Region 15)
• Entrepreneurship Assistance – Lanaudière (Region 14)
• Entrepreneurship Assistance – Outaouais (Region 07)
• Info-Guide – Cooperatives
• Entrepreneurship Assistance – Bas-Saint-Laurent (Region 01)
• Entrepreneurship Assistance – Centre-du-Québec (Region 17)
• Entrepreneurship Assistance – Laval (Region 13)
• Info-Guide – Not-for-Profit Organisation (NPO)
• Entrepreneurship Assistance – Côte-Nord (Region 09)
• Entrepreneurship Assistance – Nord-du-Québec (Region 10)
• Entrepreneurship Assistance – Chaudière-Appalaches (Region 12)
• Entrepreneurship Assistance – Montérégie (Region 16)
• Entrepreneurship Assistance – Estrie (Region 05)
• Entrepreneurship Assistance – Gaspésie–Îles-de-la-Madeleine (Region 11)
• Entrepreneurship Assistance – Capitale-Nationale (Region 03)

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

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