The federal government has announced a social finance fund of $755 million as part of its fall economic statement, an experimental funding approach that will be used for investments that provide social and environmental returns, as well as financial.
Rhiza Capital, a local investment group, was highlighted by a federal social finance steering group as an example of the type of organization that could be supported by the new fund.
Brian Smith, CEO of Rhiza, told Coast Reporter he is hopeful the fund may benefit the organization but that “it’s too early to say,” since details about how funds will be dispersed haven’t been released yet.
Rhiza bills itself as an “impact investment group of companies” that was co-founded by Community Futures Sunshine Coast, Sunshine Coast Credit Union and Powell River Community Investment Corporation. Recent investments by Rhiza include Salish Soils, Popul8, Mesh Food Exchange and Ethelo Decisions.
“We continue to look at ways to create financing strategies that leverage community impact,” Smith said.
Smith is also a member of the pan-Canadian National Impact Investment Practitioners Table, which represents 27 funds, and which has been lobbying the federal government to support social finance.
“Our intention in developing the social finance fund is that we need this for Canada,” Smith said.
“We know there is a gap in the right kind of funding and financing for entities that will benefit the community,” he said. “Whether Rhiza gets it or not, it’s going to be valuable for Canada.”
