Canada is facing a generational economic and affordability crisis. Families are struggling with housing and job insecurity. Communities are being hit by Main Street slowdowns and factory shutdowns. Our sovereignty, resilience, and prosperity are at stake in the midst of a trade and tariff war.

Fortunately, we have local institutions and assets that can help us navigate this precarious moment. Across Canada, community finance institutions including loan and equity funds, community futures organizations, Indigenous financial institutions, community bond issuers, and credit unions are investing in people and projects where traditional banks will not. They are financing affordable housing, Indigenous enterprises, local food systems, and green energy.

Now is the moment for the federal government to step up with a bold national Community Finance Strategy by:

• Incentivizing Local Investment: Introduce a federal tax credit for community investments and make community investments eligible for RRSPs to unlock patient capital.

• Enabling Federal Loan Guarantees for Community Finance: Establish a loan guarantee facility to catalyze private lending and attract institutional capital for local investments.

• Accrediting and Capitalizing Community Finance Institutions (CFI): Create a federal accreditation system and registry for CFIs and launch a $250M Community Finance Fund to provide catalytic operating and investment capital.

• Enacting a Canadian Community Reinvestment Act (CCRA): Require financial institutions to disclose and improve their service to under-resourced communities.

• Mobilizing Crown Corporations, Pension Funds and Financial Institutions: Mandate disclosure and local investment targets for Canadian Pension Funds, Chartered Banks, and, Crown Corporations e.g. BDC, EDC, FCC, and CMHC.
  

With modest public investment and smart policy, we can unlock billions in private capital, create jobs, and ensure prosperity reaches every corner of the country. Community finance institutions already manage billions of dollars in assets from individuals, foundations, and beyond. With federal support, this ecosystem could grow from six billion today to more than ten billion by 2030.

A joint-submission has also been submitted to Build Canada Homes. Read it here.