The Black Entrepreneurship Loan Fund is a partnership between the Government of Canada, Black-led business organizations, and several financial institutions. It will provide loans up to $250,000 to Black business owners and entrepreneurs across the country.
The Government of Canada has announced that the Loan Fund is accepting loan applications from Black business owners and entrepreneurs through the Federation of African Canadian Economics (FACE).
The first phase of the Fund includes a $33.3 million investment from the Government of Canada and $130 million from the Business Development Bank of Canada (BDC) as the first partner financial institution.
The second phase of the Fund includes an investment of $128 million committed from financial institutions Royal Bank of Canada, BMO Financial Group, Scotiabank, CIBC, National Bank of Canada, TD, Vancity and Alterna Savings. Additional FIs and capital may also be announced in this phase.
Eligibility Requirements
To be eligible for a loan, an applicant must:
- self-identify as Black or black-led (majority ownership of >51% by Black Canadian);<
- be a legal resident of Canada: i.e. Canadian citizen or permanent resident, or conventional refugee (for micro loans only), or a legal entity owned and controlled by a Canadian citizen or citizens; and
- be a minimum of 18 years.
Eligible Financing
Loans can be used for:
- Capital investments - equipment, leasehold improvements, property improvement, office equipment
- Working capital - Inventory, payroll, lease payments, accounts management, rent, overhead costs
- Short-term receivable financing (i.e. financing to service a contact)
Loan Criteria
The loan fund will offer loans up to $250,000.
Alterna Savings and Vancity, under the micro-credit pilot, will offer loans between $10,000 and $25,000.
Eligible Businesses
Eligible businesses may include start-ups and existing for-profit small businesses in Canada. Such businesses can be corporations or sole proprietors, and for-profit social enterprises and cooperatives. Businesses must have a business plan, business registration, and recent financial statements or financial projections for start-ups.
Any Black business owners and entrepreneurs with questions, are encouraged to reach out to F.A.C.E. for further details.