Solidarity is more important than ever for the recovery: The Fonds assists local businesses with capital and other forms of support
Highlights
- Investments made in 2019-2020: $1.4 billion (initial projection of $1 billion)
- Additional investments directly in response to the economic consequences of the pandemic
- More than 1,300 partner companies in the Fonds de solidarité FTQ network accepted the 6-month loan deferral offer
- Additional forms of support:
- PME-911 “aid cell” set up with the FQM and Inno-Centre to advise companies in the regions
- Support to help businesses determine what steps they need to take to safely and successfully resume operations
Montréal, June 18, 2020 –In its 2019-2020 financial year, which ended May 31, 2020, the Fonds de solidarité FTQinvested $1.4 billion to further the Québec economy, 40% more than the projected amount. The Fonds namely made additional investments directly in response to the pandemic.
“Because we are present in all the regions of Québec and close to businesses, we were able to quickly identify the most urgent needs back in March. We therefore quickly developed an action plan that includes capital and other forms of support to help Quebecers return to work as soon as possible,” said Gaétan Morin, the Fonds’ President and Chief Executive Officer.
“Discussions initiated in March with our partner companies led to a plan to address their short- and medium-term financial issues. The Fonds is also here to help companies resume operations safely and successfully,” said Janie Béïque, the Fonds’ Executive Vice-President, Investments.
The Fonds’ financial assistance plan for businesses has three phases:
- “Immediate liquidity”: six-month payment deferral for loans granted by the Fonds network (March and April);
- “Working capital”: investments so businesses can resume operations and Quebecers can quickly find work again (underway); and
- “Recapitalization”: injection of patient capital so businesses can re-establish a reasonable debt level in order to be able to carry out growth projects (underway).
On March 19, 2020, the Fonds offered its partner companies a six-month deferral on loan payments. Since then, more than 1,300 companies in the Fonds’ network have taken advantage of the offer.
Among the investments made over and above the projection are a $40 million credit facility granted to Vision New Look Group and $7.5 million invested in IMV, a biopharmaceutical firm working on a vaccine against COVID-19.
Also, the Fédération Québécoise des Municipalités, Inno-Centre and the Fonds locaux de solidarité FTQ formed PME-911 in April, an “aid cell” to advise SMEs. Lastly, to ensure operations resume safely, the Fonds is also helping its portfolio companies take the steps needed to safely resume operations and to implement the required measures.
After COVID-19: a fairer, greener and more innovative economy
“Although the crisis has created many challenges, the recovery is an opportunity to build a fairer, greener and more innovative economy,” continued Janie Béïque. “Let’s take advantage of this time to launch growth-generating projects that will create jobs and have a concrete impact on Québec’s future.”
The Fonds recently announced the new $20 million fund Gaz Naturel Renouvelable Québec, in partnership with Xebec, for the development of renewable natural gas facilities in Québec. This new initiative will create jobs in a promising industry even as contributing to the fight against climate change by furthering the circular economy.
Partners from the agricultural or municipal milieus will thus have access to the capital and expertise they need to develop and operate cutting-edge facilities to treat organic waste. This fund for renewable natural gas projects is the first of its kind in Québec.
$300,000 for community organizations
“It’s when challenges arise that solidarity takes on its full meaning,” said Gaétan Morin. “We are therefore supporting community organizations, which provide vital aid to society’s most vulnerable people. The work of these organizations and their hundreds of volunteers is more important than ever during this pandemic.”
The Fonds recently contributed $300,000 to six community organizations: Cuisines Solidaires (an initiative of Tablée des chefs), SOS Violence Conjugale, Tel-Jeunes, Centraide, the Red Cross and Les Petits Frères.
The Fonds’ complete financial results for its 2019-2020 financial year ended May 30, 2020, will be unveiled June 30, 2020.
About the Fonds de solidarité FTQ
The Fonds de solidarité FTQ is a capital development fund that channels the savings of Quebecers into investments. With $16.7 billion in net assets as at November 30, 2019, the Fonds has supported more than 215,000 jobs. The Fonds has over 3,100 partner companies and upwards of 700,000 shareholders-savers.
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