The Capitalization of Social Economy Enterprises (CAES) — Stream 2 program offers up to $2,000,000 in funding to support the collective acquisition of enterprises, either fully or partially, by eligible cooperatives and non-profit organizations. The program aims to promote social economy business models by financing the purchase of company assets or shares.

Financing terms and conditions

Minimum cash contribution required: 10% of the granted aid.
Maximum aid rate: 80% of eligible expenses.
Minimum aid amount: $50,000.
Maximum aid amount: $2,000,000.
Combined government aid rate: 90% of eligible expenses.

Activities funded

Complete purchase of a company's assets or shares for integration into a social economy enterprise or the formation of a new social economy enterprise.
Partial purchase of shares in a company by a cooperative of worker-shareholders (CTA).

Examples of admissible projects:

$ 15,000

Developing a community garden for urban sustainability workshops

Eligibility

The applicant must be a non-profit organization (NPO) or a cooperative, federation of cooperatives, or confederation.
For a full enterprise purchase (Sub-component 2A), eligible cooperatives include: worker cooperatives, producer cooperatives, consumer cooperatives, solidarity cooperatives, federations, or confederations.
The total asset value of the enterprise must be 100 million CAD or less.
For a partial share purchase (Sub-component 2B), the applicant must be a shareholder worker cooperative with a total asset value of 100 million CAD or less.
Projects must involve the complete acquisition of company assets or shares, ensuring that operations are conducted collectively as a social economy enterprise.
There must be a minimum adjusted capitalization ratio of 35% after transaction completion.
All capital expenditures, including those related to the complete purchase contract and incidental expenses, are considered eligible.

Who is eligible?

Non-profit organizations (NPOs)
Cooperatives
Federations of cooperatives
Confederations of cooperatives
Worker-shareholder cooperatives (CTA)
Cooperative of work
Cooperative of producers
Cooperative of consumers
Cooperative of solidarity
Federation or confederation of cooperatives

Eligible expenses

Expenditures included in the complete purchase contract of an enterprise, including capital expenditures.
Associated costs related to the complete purchase contract.
Expenditures included in the partial purchase contract of shares of an enterprise, including capital expenditures.
Associated costs related to the partial purchase contract of shares.

Additional information

The grant program has been suspended as of December 6, 2024, for an indefinite period to ensure fund availability for contractual obligations.
The reception of new applications is currently suspended to manage the budget envelope efficiently and maintain program standards.
The minimum contribution required from the beneficiary is 10% of the assistance provided.

Apply to this program

Frequently Asked Questions about the Capitalization of Social Economy Enterprises (CAES) — Stream 2 Program

Here are answers to the most common questions about the Capitalization of Social Economy Enterprises (CAES) — Stream 2. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the Capitalization of Social Economy Enterprises (CAES) — Stream 2?

How much funding can be received?

What expenses are eligible under Capitalization of Social Economy Enterprises (CAES) — Stream 2?

What is the deadline to apply?

Is the Capitalization of Social Economy Enterprises (CAES) — Stream 2 a grant, loan, or tax credit?

Who are the financial supporters of the Capitalization of Social Economy Enterprises (CAES) — Stream 2?

Who is eligible for the Capitalization of Social Economy Enterprises (CAES) — Stream 2 program?

To be eligible for the Capitalization of Social Economy Enterprises (CAES) — Stream 2 program, you must: The applicant must be a non-profit organization (NPO), cooperative, federation of cooperatives, or confederation. For complete purchase of a business (sub-stream 2A), the business must have total assets valued at $100 million or less. For partial purchase of shares (sub-stream 2B), the business must involve a workers' shareholder cooperative (CTA) with total assets valued at $100 million or less.