Access up to $250,000 with The Black Entrepreneurship Loan Fund
This fund provides friendly 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.
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 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.
Black Entrepreneurship Loan Fund Details
Developed To Help Black Business Owners Thrive
You are eligible for the Black Entrepreneurship Loan Fund if you self-identify as Black or if your company is black-led (a business with majority ownership, or 51%, by a Black Canadian). You also need to be a legal resident of Canada by way of citizenship or permanent residency. Conventional refugees are eligible for business funding in the form of microloans. A legal entity owned and controlled by a Canadian citizen who meets all the eligibility requirements is also eligible for the funding. Applicants must also be at least 18 years old.
Capital Investments Including Equipment
Leasehold Improvements
Property Improvement
Office Equipment
Inventory
Payroll
Lease or Rent Payments
Business Overhead
What Size of Loan is Available?
The Black Entrepreneurship Loan Fund provides access to business funding based on your needs, stage, and situation. The financing for the Black Entrepreneurship Loan Fund is provided through a range of lenders. The maximum loan amount is $250,000.
Black Entrepreneurship Loan Fund Frequently Asked Questions
1. 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.
2. How is the Loan Fund Connected to other components of 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.
3. 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.
4. 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.
Eligibility
How can you be eligible for the Black Entrepreneurship Loan Fund
Who is eligible under the Black Entrepreneurship Loan Fund?
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.
What businesses are not eligible under the loan fund?
Not-for-profit organizations are not eligible for loans.
What is not eligible for financing under the loan fund?
Loans cannot be used to finance items such as goodwill, restructuring conventional business-related debts, dividend payout, shareholder loan repayment or issuance, bonuses, stock buybacks, option issuance, or an increase to shareholder or management committee compensation.
This list is not exhaustive. When in doubt, speak with your account manager.
What businesses are eligible under the loan fund?
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. 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 FACE for further details.
What is eligible for financing under the loan fund?
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)
Don’t waste time – this is the best funding solution available!
Canadian Banks That We Work With
How to Apply for The Black Entrepreneurship Loan Fund
Receive Approval in 3 Easy Steps
STEP 1:
Complete our quick pre-qualification assessment form.
STEP 2:
Our professional staff will contact you for pre-qualification.
STEP 3:
We take care of your entire loan application from start to finish.
APPROVED!
Sit back, relax and receive the funds to grow your business.
Why Our Clients Choose Us?
Running a business takes courage. We understand the chances you’re taking to build something, which is why we take the time to understand you and your business. By knowing what you want – and where you want to go – we can support you by getting you the right funding for your business. We have decades of experience and deep-seated knowledge of government funding programs and processes. They respect our quality and know that we will simplify funding.
98% Approval Rate on Applications
We know the exact structure and process to get you approved. Our applicant approval rate is 98%.
Professional Experienced Team
Our team consists of experienced professionals from the banking, financial economic and private sector.
Approval Ready Business Plan
We write an approval ready business plan tailored to the needs of the programs and the banks to get you approved!
Fast, Efficient & No Hassle Process
We remove the tedious hours of paperwork to get your funding fast. Your business funding is our priority.
Extended Support after Approval
Our services go beyond financing with full suite of services to meet all your business needs. Our resources are yours.