The Black Entrepreneurship Loan Fund.
Access up to $250,000 with the Black Entrepreneurship Loan Fund
Are you looking for a Black Entrepreneurship Loan Fund?
You are eligible for the Black Entrepreneurship Loan Fund if you self-identify as Black or if your business is Black-owned (a business that is a majority or 51% owned by a Black Canadian). You must also be a legal resident of Canada, meaning you must have citizenship or permanent residency. Traditional refugees are eligible for business funding in the form of microloans. A legal entity owned and controlled by a Canadian citizen who meets all eligibility requirements is eligible for financing. Applicants must also be at least 18 years of age.
Capital investments (including equipment)
Lease or rent payments
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Our relationship managers are ready to work with you to find the best solution for your unique needs.
Almost All Black Owned Canadian Businesses Qualify
Eligible businesses include start-ups and existing for-profit small businesses in Canada. These businesses may be corporations or sole proprietorships and for-profit social enterprises. Companies must have a business plan, business registration and, for start-ups, current financial statements or financial projections.
Black business owners and entrepreneurs who have questions are welcome to contact FACE for more details.
To be eligible for a loan, an applicant must:
- self-identify as Black or Black-led (majority ownership of >51% by Black Canadians);
- be a legal resident of Canada: i.e. Canadian citizen or permanent resident, or conventional refugee (for microloans only), or a legal entity owned and controlled by a Canadian citizen or citizens; and
- be a minimum of 18 years.
Loans cannot be used to fund items such as goodwill, restructuring of conventional business-related debt, dividend payments, repayment or issuance of shareholder loans, bonuses, stock repurchases, issuance of options, or an increase in shareholder or director compensation.
* Certain businesses and projects are ineligible for the Black Entreprenuership Loan Fund. Apply today to see if your business qualifies.
Frequently Asked Questions
What is the Black Entrepreneurship Loan Fund?
The Black Entrepreneurship Loan Fund, a component of the Black Entrepreneurship Program (BEP), is a partnership between the Government of Canada, Black-led business organizations and financial institutions. The loan fund is now an investment of $291.3 million to support the success of Black entrepreneurs and business owners.
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). BDC, Vancity and Alterna Savings are the first partner financial institutions in the launch of the Loan Fund.
The second phase of the fund includes an investment of $128 million committed from these financial institutions: the Royal Bank of Canada, BMO Financial Group, Scotiabank, CIBC, the National Bank of Canada, and TD Bank. Additional financial institutions and capital may also be announced in this phase.
The fund will provide loans of up to $250,000 to support Black business owners and entrepreneurs across Canada and lay the foundation for future success and long-term change.
How is the loan fund connected to other components of the The Black Entrepreneurship Program (BEP)?
The loan fund is expected to build on the National Ecosystem Fund component of the BEP, connecting with Black-led business organizations to provide business advisory services to Black entrepreneurs and allowing them to increase their existing offerings and grow their businesses.
Over time, it is expected that the loan fund will feed into the Knowledge Hub component of the BEP, gathering relevant and much-needed information to inform the hub’s research of understanding and mapping out Canada’s Black entrepreneurship ecosystem.
What is the Microloan Pilot Program?
Alterna Savings and Vancity credit unions will be partnering with FACE to deliver a microloan pilot program under the loan fund, administering microloans from $10,000 to $25,000 to Black entrepreneurs in Ontario and British Columbia. Credit unions have long served underserved entrepreneurs, helping them become economically and socially empowered. Credit unions have a deep understanding of community loan funds, and Alterna Savings has done so through its 20-year Community Micro-Finance Program.
The Government of Canada and FACE look forward to seeing the success of this pilot and look forward to welcoming other financial institutions to deliver microloans across Canada.
Why did the Government of Canada create a loan fund specifically for Black Entrepreneurs and business owners?
Black Canadian business owners and entrepreneurs make important contributions to the Canadian economy, yet they continue to face systemic barriers in starting and growing their businesses. This has been further exacerbated by the COVID-19 pandemic. The Government of Canada is working to address these long-standing, systemic barriers with its first-ever Black Entrepreneurship Program.
The loan fund is an important step in helping Black business owners and entrepreneurs get the financial support they need so they can start up, scale up and grow across Canada and the world.