In
January 2000, an inter-faith coalition in Winnipeg launched The
Jubilee Fund Inc., a community development fund to mobilize capital
for business, housing projects and social services that create
opportunities for low-income neighbourhoods. These funds are put to
use in financing development projects in the inner-city or other
low-income neighbourhoods of Winnipeg. Jubilee's capacity to raise
new capital is severely limited by the fact that it cannot raise
money as an RRSP-eligible investment.
Last
year, Jubilee Fund sent a request to the Department of Finance
asking that the Income Tax Act and/or regulations be amended to
allow RRSP investments in independent, community development loan
funds. After much delay, in March 2001, the request was declined.
On
behalf of Jubilee Fund and our members, the Social Investment
Organization is asking Finance Minister Paul Martin to review this
matter and to ask his staff to take action to grant RRSP eligibility
to independent, community development loan funds.
Social
and Economic Impacts
The
Jubilee Fund is one of a number of such loan funds across Canada.
The social and economic importance of these vehicles is enormous.
They help to provide start-up and expansion capital to low-income
entrepreneurs who otherwise would be unable to obtain conventional
bank financing. Studies show that there is great need for this type
of capital by struggling micro-entrepreneurs.
Given
the current economic downturn, it is more important than ever to
provide creative, sustainable financing mechanisms for small
business. As well, at a time when the federal government has granted
Canadians the right to invest more of their RRSP savings worldwide,
it is appropriate that Canadians also be given the right to invest
their registered retirement savings in their own neighbourhoods and
communities.
Back
to policy and advocacy
