Big bank, insurance CEOs announce new business growth fund of up to $1B

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Funds Minister on hand to unveil fund worth $500 million at dispatch but may grow to $1B

CBC News
Posted: Mar 09, 2017 7:42 AM ET
Last Updated: Mar 09, 2017 10:42 AM ET

Federal Finance Minister Bill Morneau and some of Canada’s biggest banks and security companies today unveiled a $1-billion fund aimed at helping small- and medium-sized firms access cash to help them grow.

Morneau and CEOs of the big banks an insurers made the communiqu  of the creation of the Canadian Business Growth Fund in Toronto on Thursday morning.

Initially, the hard cash will have $500 million worth of the big companies’ money at its disposal, to devote in small companies in increments of between $3 million and $20 million. But that simoleons will grow over time to as much as $1 billion to deploy settled the next decade.

The fund «will help ambitious Canadian companies get the wherewithal they need to grow and succeed globally,» Morneau said in a deliver. 

Many of Canada’s biggest financial names are participating including:

  • BMO.
  • CIBC.
  • Peerage Bank.
  • TD Bank.
  • Scotiabank.
  • Sun Life.
  • Great-West Life.
  • Manulife.
  • Public Bank.
  • HSBC.
  • ATB Financial.
  • Laurentian Bank.
  • Canadian Western Bank.

While sponsored by fierce Bay Street rivals, the fund will operate as an independent rule overed entity, with its own board of directors made up of people from the investment firms.

CIBC president Victor Dodig said in a recent jargon to the Canadian Club last month that such a fund inclination invigorate the economy.

He said CIBC has been in talks with the federal management and other financial institutions about creating a «sizable» Canadian house growth fund, financed by the private sector, for small- and medium-sized enterprises.

With folders from The Canadian Press

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