SADC-CAE - Government of Canada invests $16 million in renewal of commitment to the SADCs of the Gaspesie and the Magdalen Islands.

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Government of Canada invests $16 million in renewal of commitment to the SADCs of the Gaspesie and the Magdalen Islands.

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Gaspesie and Magdalen Islands, June 25^th, 2024. The SADCs of the Gaspesie and the Magdalen Islands are delighted by the announcement made by the Honourable Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for Canada Economic Development for Quebec Regions (CED) at the Réseau des SADC et CAE’s 20th annual congress regarding new five-year funding agreements concluded between CED, the Réseau and Quebec’s 67 SADCs (sociétés d’aide au développement des collectivités) and CAEs (centres d’aide aux entreprises).

These investments, totalling $245 million, will ensure that Quebec’s 67 SADCs and CAEs and their network can continue to operate and to equitably deliver their main business lines (local economic development and support and funding for entrepreneurs) throughout rural and semi-urban Quebec. To be more specific in Gaspesie and the Magdalen Islands, the SADCs of Bay Chaleur, Gaspe, Haute Gaspesie, Rocher-Perce and Magdalen Islands will have 16 million dollars of investment funding at their disposal. The SADCs and CAEs will also strengthen their local interventions, notably by augmenting their activities to answer the present economic issues facing entrepreneurs. The SADCs and CAEs will also be able to strengthen their work at the local level and enhance their efforts to address the economic issues that entrepreneurs are currently facing.

“Quebec’s regions are dealing with their own particular economic challenges, and the SADCs and CAEs are here to help them rise to meet those challenges,” says. Aurele Doucet, regional representative on the Network Board of directors, “We have great ambitions for our regions. With our main business partner, Canada Economic Development for Quebec Regions, and in collaboration with local partners, we will continue to drive collective and business projects forward to success.”

Targeted investment to address issues facing entrepreneurs

This new agreement with the Government of Canada will enable SADCs and CAEs to create new financial products to help entrepreneurs tackle their priority economic issues, such as the digital and green transition and various aspects of business transfers and youth entrepreneurship. These investments represent $600,000 for each of the Region’s SADCs.

The funds come from repayments by entrepreneurs who received loans through the Regional Relief and Recovery Fund, a Government of Canada fund established in 2020 in response to the challenges of the COVID-19 health crisis.

Funding to strengthen our local efforts and draw on the Reseau’s vast network of national expertise

A $28 million envelope, also derived from Regional Relief and Recovery Fund loan repayments, will enable each SADC and CAE, as well as the Réseau as a whole, to build their capacity to support clients. Mainly, each SADC and CAE will have access to $335,000 in additional funding to support its work in local economic development and technical support for entrepreneurs. The Réseau will receive an envelope as well, so it can strengthen its advisory role and provide more services to the 67 SADCs and CAEs, including by hiring new shared resources and providing increased support for optimizing business processes.

“SADCs and CAEs make a real difference in our communities and our businesses, all across Quebec,” said the Honourable Soraya Martinez Ferrada, Minister of Tourism and Minister responsible for CED. “For 29 years now, CED has been proud to be able to count on the Réseau and its members as true key partners in achieving prosperity in our regions and their businesses. Bravo to the professionals and volunteers in your organizations who are such attentive stewards of Quebec’s regional entrepreneurial ecosystem.”

The Honorable, Soraya Martinez Ferrada, Tourism Minister and Minister responsible for CED.

Overall, these new agreements will enable SADCs and CAEs to carry out their missions close to home while drawing on the expertise of the Réseau’s vast network to assist their local communities and entrepreneurs. ”Their efforts are skilled, personalized and people-focused, as witnessed by Joe Dugas, owner of Joe Dugas et Fils Inc. Nouvelle: The SADC was a benefit for us, we were able to buy other transport companies and expand our business, were able to access loans with advantageous interest rates to buy electric buses. Furthermore, we appreciated the support offered to help us re-organise the new work tasks required due to expansion.”

Some SADC and CAE impacts on Quebec’s economy

Investing in SADCs and CAEs pays off! According to an Aviseo Conseil study, between 2019 and 2023, SADCs and CAEs increased Quebec’s real GDP by $458 million. Of that total, $85 million came from our loan investments and $273 million was generated by the improved five-year survival rate of companies supported by SADCs and CAEs. A Statistics Canada study found that the five‑year survival rate for SADC and CAE clients was more than double that of other businesses.

The SADC Network (Community development Agencies) and CAE (Business Help Centres) is a grouping of 57 SADCs and 10 CAEs who have been working for the last 35 years for economic development in their communities. This is 10000 professional workers and volunteers who support and finance more than 10000 entrepreneurs and over 1000 local economic development projects each year. www.sadc-cae.ca

Community Futures Program (CFP)

This Canada-wide program supports local economic development and strengthens communities’ capacity to sustainably achieve their full potential. Its main objectives are: