Investments will support small business growth, midsize business equity
The recession has hit Canadian small business owners particularly hard. But small business owners in Quebec may soon get welcome relief, thanks to the Desjardins Group and the Caisse de depot et placement du Quebec.
The Caisse - a financial institution that manages funds largely for pension and insurance plans - and the credit union network Desjardins Group announced Tuesday that they will partner to invest a total of $600 million to Quebec small and midsize businesses over the next three years.
The investments will focus on helping SMEs "undertake projects with good profitability prospects," such as research and development, acquisitions, expansions and optimization of productivity.
"Our economic vitality is predicated largely on the dynamism and capacity for innovation of businesses in all regions of Quebec," said Monique F. Leroux, chair of the board, president and CEO of Desjardins Group.
An allocation of $200 million will go toward supporting small business growth - primarily in the form of subordinated loans - while the remaining $400 million will be awarded to medium-sized businesses to support growth and equity.
Investments in small business growth are also investments in the overall economic recovery, as 45 percent of Canada's gross domestic product is generated by small and midsize businesses, according to the Canadian Federation of Independent Business.
