British Columbia has introduced legislation to convert an investment initiative into a Crown corporation with the authority to make independent decisions aimed at spurring economic recovery after the pandemic.

The $500-million InBC investment fund was created last September as a way for the province to invest alongside the private sector to support small and medium-sized companies, which make up 98 per cent of all businesses in the province.

The purpose of the fund is to make investments that achieve a financial return by meeting the government's social, economic and environmental policy objectives that include building a more innovative, low-carbon economy.

The corporation is expected to be operational by the fall and would be led by a yet-to-be hired chief investment officer responsible for decisions without interference from outside parties or government.

A board of directors appointed by cabinet would include two public servants and seven people from outside the public service.

Premier John Horgan says the fund will support startups, help promising companies scale up and attract world-class talent to the province, supporting economic recovery in all regions.