Enabling Local Investing in Alberta: The Role of Community Economic Development Investment Funds (CEDIFs)

Momentum Calgary

Year: 2016

Entrepreneurs in Alberta are seeking access to affordable capital to grow and expand their businesses. Albertans often want to invest in small, locally-owned businesses that benefit their communities — businesses that provide positive social and environmental returns, in addition to financial returns. However, regulatory barriers prevent potential investors from supporting local small business in Alberta. By enabling the creation of Community Economic Development Investment Funds (CEDIFs), the Government of Alberta can play an instrumental role in meeting these needs and connecting supply and demand.

Momentum asks that the Government of Alberta support the creation of CEDIFs in Alberta by:

  • Creating a market exemption to enable all Albertans (unaccredited and accredited investors) to invest in locally-owned businesses, social enterprises, and co-ops through the vehicle of a CEDIF; and
  • Ensuring that all Albertans are able to take advantage of the Alberta Investor Tax Credit (AITC) through investing in CEDIFs.

Download Enabling Local Investing in Alberta

Enabling local investing is complex and there are multiple required solutions to improve the investing environment in Alberta. This paper focuses on the creation of CEDIFs through the creation of a local exemption from otherwise applicable securities laws and the application of the Alberta Investor Tax credit to these investments.

The purpose of CEDIFs are to:

  • Mobilize local capital for small business development;
  • Keep more wealth local instead of it being invested outside of the province;
  • Enable everyday Albertans (unaccredited investors) to invest in business in their communities; and
  • Support businesses that contribute positive social and environmental returns to our communities.

Enabling local investing will help local businesses flourish. By increasing access to capital, businesses that provide meaningful, living wage work to vulnerable Albertans can grow. We will have more businesses that protect the environment and are creating green jobs. Increasing local investment opportunities supports the current government priorities of economic growth and diversification, and will benefit local economies and communities in Alberta.