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The Honourable Chrystia Freeland, P.C., M.P. Deputy Prime Minister

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The Honourable Chrystia Freeland, P.C., M.P. Deputy Prime Minister The Honourable Chrystia Freeland, P.C., M.P. The Honourable Ahmed Hussen, P.C., M.P. Deputy Prime Minister and Minister of Finance Minister of Families, Children, and Social House of Commons Development Ottawa, ON K1A 0A6 House of Commons Ottawa, ON K1A 0A6 February 18, 2021 Dear Deputy Prime Minister Freeland and Minister Hussen, We write to you today to communicate our firm support for the for the proposal set out by MP Ryan Turnbull (Whitby) on December 9, 2020, on behalf of the Social Innovation Caucus. Beyond the immediate health crisis of COVID-19, there is no longer any doubt that the pandemic has exacerbated vulnerabilities and income insecurity already felt by seniors, women, Indigenous peoples, students, racialized Canadians, people living with a disability, those who are immune compromised, and many others. Many non-governmental stakeholders agree that the economic recovery phase presents a rare and historic opportunity for long overdue structural and systemic change. Many are looking to the Federal Government as we adjust to the new post-pandemic reality, to demonstrate leadership in building a more inclusive, equitable, resilient, and sustainable economy. We believe this recovery period offers us an opportunity to rebuild our economy, to achieve greater local and regional resilience, to improve labour market access for the most vulnerable, and to fairly transition to a low-carbon economy. Senators in all groups and caucuses have taken a non-partisan approach to reflecting upon and advancing initiatives to meet this challenge and build back better. We know that despite the unprecedented efforts taken by the Federal Government to support Canadians, more can still be done. We believe that MP Turnbull and the Social Innovation Caucus’ proposal is both in line with the approach taken by the government, as well as the work being done by senators. As MP Turnbull noted, we concur that the unique and complex challenge immediately before us is one for which the Social Innovation and Social Finance Strategy for Canada was purpose built. We believe that within the current COVID-19 context as we look to economic recovery, our government should act swiftly to: 1) Accelerate the Social Finance Fund by immediately releasing $400 million of the $755 million budgeted; 2) Make the Investment Readiness Program (IRP) an ongoing program and double it in size with a commitment of $100 million per year; 3) Look to increase investment in social innovation and social finance in the upcoming budget by creating social innovation clusters to leverage the sectors capacity to enhance our government’s ability to achieve desired outcomes (i.e. poverty reduction, energy transition, affordable housing, food security, better access to childcare, improved care for seniors). We feel strongly that social innovation and social finance, and specifically social enterprise, should be a central focus for Canada’s economic recovery because it offers substantive social, economic, and environmental benefits that match the current challenges faced by Canadians. Not only does a focus on the Social Economy address the specific challenges brought on by COVID-19, but it can help us get at the underlying causes of social injustice and inequality, while enhancing the transition to a low carbon, sustainable economy. More specifically, what we recommend above will: • Increase economic security for people who are most vulnerable: COVID-19 has disproportionately affected people who are vulnerable and marginalized, and 75% of employment that social enterprises create help people who experience barriers to employment • Help sustain the non-profit and charitable sector: COVID-19 has left the non-profit and charitable sector extremely vulnerable. The only kind of revenue that is increasing in the non- profit and charitable sector is “earned revenue” which includes social enterprise. • Mobilize private capital and maximize impact: a federal government investment will attract private capital, help social enterprises scale-up and recirculate capital (through loans and repayment) while achieving impact (and saving money) • Address “root causes” and help achieve multiple objectives simultaneously: helps address the underlying causes of homelessness, poverty, unemployment, food insecurity, climate change, lack of childcare, and more. Especially in these times where we have seen the need for increased emphasis on strengthening our local economies and social infrastructure, creating pathways to economic inclusion for those who are vulnerable, and continued action on mitigating the climate crisis. The support of social finance and social innovation enables the scaling up of community-led solutions that address the unique and complex challenges that Canada faces coming out of COVID-19. Sincerely, Frances Lankin, P.C. Senator, Ontario cc: The Right Honourable Justin Trudeau, P.C, M.P., Prime Minister of Canada The Honourable Jean-Yves Duclos, P.C., M.P., President of the Treasury Board The Honourable Mona Fortier, P.C., M.P., Associate Minister of Finance and Minister of Middle Class Prosperity René Cormier Mobina S.B. Jaffer Senator, Quebec Senator, British Columbia Mary Coyle Stanley Kutcher Senator, Nova Scotia Senator, Nova Scotia Marty Deacon Tony Loffreda Senator, Ontario Senator, Quebec Colin Deacon Marilou McPhedran Senator, Nova Scotia Senator, Manitoba Tony Dean Julie Miville-Dechêne Senator, Ontario Senator, Quebec Mike Duffy Ratna Omidvar Senator, Prince Edward Island Senator, Ontario Pat Duncan Kim Pate Senator, Yukon Senator, Ontario Éric Forest Chantal Petitclerc Senator, Quebec Senator, Quebec Josée Forest-Niesing Mohamed-Iqbal Ravalia Senator, Ontario Senator, Newfoundland and Labrador Rosa Galvez Pierrette Ringuette Senator, Quebec Senator, New Brunswick Diane Griffin Pamela Wallin Senator, Prince Edward Island Senator, Saskatchewan Nancy Hartling Howard Wetston Senator, New Brunswick Senator, Ontario .
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