Fondaction - Fonds de développement de la CSN pour la coopération et l'emploi

This document was prepared with the information on the Fondaction's Web site.

The basic mission of a labour fund is to maintain and create jobs by investing in Quebec companies. Fondaction has also adopted the mission to give preference to companies that are committed to participatory management, operate in the social economy (cooperative or others), practice environmental stewardship and that are concerned with more sustainable development. The financial partner of some 100 businesses, Fondaction contributes to the maintenance and creation of thousands of jobs throughout Quebec.

Eligibility Criteria

Fondaction can invest in any Quebec company regardless of its sector of activity or stage of development so long as the majority of its employees live in Quebec and its assets are less than $100 million or its net equity is not over $50 million.

However, Fondaction gives preference to:

• companies involved in participatory management;
• worker-controlled enterprises, whether cooperative or not, operated on the basis of an equal apportionment of voting rights among all the shareholders or members; and
• environmentally-concerned enterprises whose commitments, conduct or activities contribute to the preservation or improvement of the quality of the environment.

Eligible Activities

Fondaction supports nearly 100 companies, thereby creating or maintaining thousands of direct and indirect jobs. Based on its view of development, Fondaction maintains that to be considered meaningful, commercial, financial and economic operations must not only be profitable and viable but also contribute to the public interest.

Summary

Although Fondaction gives preference to investments ranging between $2 million and $5 million, it can invest as little as $500,000.

Its participation takes the form of a purchase of common or preferred shares in the case of companies or preferred shares in the case of cooperatives; an unsecured loan that may call for a royalty on profits, the acquisition of bonds or convertible or participating debentures; or a loan guarantee or security granted by a financial institution approved by Fondaction

To meet the needs of companies that require smaller investments, the Fondaction has created two partner funds:

• The Fonds de financement coopératif, which invests between $100,000 and $250,000 in cooperatives and other companies in the social economy; and
• Filaction, the Fonds pour l'investissement local et l'approvisionnement des fonds communautaires, which finances projects ranging from $50,000 to $150,000.

For more information, consult http://www.fondaction.com/ (In French only)

Quebec Contact(s):
FONDACTION
Suite 103
2175 De Maisonneuve Boulevard East
Montréal, Quebec  H2K 4S3
Telephone: 514 525-5505
Fax: 514 525-0863
Toll-free (information): 1-800-253-6665