Impact Policy Tracker Policy

Social Finance Fund (SFF)



The Social Finance Fund (SFF) is a USD 564 million initiative designed to accelerate the growth of the country’s social finance market by improving access to affordable and flexible capital for charities, non-profits, social enterprises, co-operatives, and other social purpose organisations. The SFF was established by the government as part of its broader Social Innovation and Social Finance Strategy, alongside the Social Innovation Advisory Council and the completed Investment Readiness Programme.

SFF’s goals include attracting private investment, growing the capacity of social finance intermediaries, supporting equity-deserving groups, and driving progress towards the SDGs and Indigenous Reconciliation.

Managed by three fund managers, the SFF will invest up to USD 282 million over its first five years into SFIs such as credit unions, community loan funds, and private equity firms. These intermediaries will then provide repayable finance, through debt, equity, or hybrid instruments, to organisations tackling social and environmental challenges in their communities.

Highlights

  • Supporting Indigenous Economic Reconciliation: As part of its commitment to advancing Indigenous reconciliation, the Social Finance Fund allocated $50 million to the Indigenous Growth Fund, an Indigenous-led, self-determined investment vehicle managed by the National Aboriginal Capital Corporation Association. This fund provides capital to Indigenous entrepreneurs and communities, supporting inclusive economic growth while ensuring that investment decisions remain in Indigenous hands.

  • Complemented by Capacity Building for SPOs: Complementing the Social Finance Fund, Canada’s $50 million Investment Readiness Programme is designed not only to provide grants but also to strengthen the capacity of Social Purpose Organisations (SPOs), empowering them to effectively access repayable finance. The programme focuses on capacity building, offering tailored support to help organisations develop robust business models, implement effective impact measurement and management practices, and create strategies to engage with the social finance market.

Government’s Role:
Market Facilitator


Country:
Canada

Policy Type:
Government-enabled Wholesale Funds

Year: 2023

Responsible Institution:
Employment and Social Development Canada

Government-enabled Wholesale Funds

What Can Governments Do to Enable Wholesale Funds?

Wholesale funds are financial platforms that aggregate large pools of capital to provide flexible and catalytic financing to businesses and intermediaries. They help grow the volume of private capital flowing to purpose-driven enterprises and contribute to broader market development, mainly by supporting pipeline development, deploying de-risking mechanisms, and facilitating collaboration across the ecosystem.

Governments have played a critical enabling role in the establishment of wholesale funds. This has included enacting legislation to unlock dormant or unclaimed assets -as seen in the cases of Big Society Capital in the UK and JANPIA in Japan- or directly deploying catalytic capital to support the creation of these funds, as in the case of Spain. 

For more information on Wholesalers, visit GSG Impact’s reports: Impact Investment Wholesalers and Fund of Funds and Building Impact Investment Wholesalers.