TORONTO, Mar. 18, 2014 – Social Capital Partners (SCP) and the Ontario government’s Office of Social Enterprise are collaborating to explore a pay-for-performance model that will increase access to employment opportunities for persons with disabilities, new Canadians and other traditionally disadvantaged groups. With support from the Ontario Ministry of Economic Development, Trade and Employment, SCP will conduct a feasibility study commencing this spring. Based on the findings from the study, the expected outcome will be the implementation of a pilot in partnership with one or more Canadian bank lenders.
The concept for this new social finance initiative has emerged as an extension of SCP’s current work. Through the Community Employment Loan Program launched in 2006, SCP facilitates access to financing for entrepreneurs and franchisees who commit to hiring individuals at a disadvantage in securing work. The terms of these Community Employment Loans are directly linked to outcomes: for every employee a business owner hires and retains from one of SCP’s community partners, the interest rate on the loan decreases.
Building upon this work, SCP is partnering with the Ontario government to develop the next phase – a modified new model that has significant potential for scale because it would be delivered, in part, through bank branches in local communities. The idea is to adapt the key features of the Community Employment Loan – namely financing terms that improve based on employment retention outcomes – and make them available to every small business owner and entrepreneur taking on a small business loan. This transition, which entails the integration of a social finance tool into a mainstream financial institution offering, is pivotal to achieve true scale.
Share with a friend
Related reading
Three ideas to make home ownership more affordable that aren’t getting the attention they need
Canadians are more vulnerable to Trump’s economic warfare today because our housing system is in crisis and has left many Canadians without affordable places to live. Some of our own bad policy choices have put us in this position of vulnerability. We've got three housing policy ideas we want the team at Missing Middle to look into.
Inside the corporate battle over your pet’s health | The Fifth Estate
SCP Fellow Rachel Wasserman speaks with CBC's Steven D'Souza as part of an investigation into the skyrocketing cost of owning a pet. The documentary reveals how independent vet clinics are being gobbled up by multinational corporations and private equity for profit.
Concepts of a plan to confront the new United States
Living next to a superpower run by oligarchs is not where we expected to be 20 years ago, says Matthew Mendelsohn. But it’s where we are. Pretending otherwise doesn’t serve our interests. Canada is big enough, powerful enough, smart enough and rich enough to build a stronger, more independent economy if we start now.