TORONTO – The federal government and Canada’s big banks have announced a fund worth up to $1 billion over 10 years intended to help small- and medium-sized businesses access capital so they can expand operations.
The government and the banks say the pool of money would initially set aside more than $500 million for the first year, with the possibility of that doubling over the next nine years, depending on demand for investment and the fund’s performance.
The announcement follows a recommendation issued last month by a federal panel advising Finance Minister Bill Morneau on economic growth.
The need to help small- and medium-sized enterprises secure money to grow has become a growing topic of conversation in financial and political circles lately.
During a speech to the Canadian Club of Toronto last month, CIBC CEO Victor Dodig spoke of how such a fund would invigorate the economy.