Canada Has A Black Entrepreneurship Loan Fund & Black Business Owners Can Get Up To $250,000
There are also microloans available from $10,000 to $25,000!
Government of Canada building in Ottawa. Right: Person working at a desk.
Canada has a Black Entrepreneurship Loan Fund that offers loans from $10,000 to $25,000 and even up to $250,000 to Black entrepreneurs and business owners.
The federal government said that this loan fund is meant to address systemic barriers that Black business owners and entrepreneurs face when trying to get financing.
So, here's what you need to know about the Black Entrepreneurship Loan Fund including who's eligible and how to apply.
What is the Black Entrepreneurship Loan Fund?
Launched in 2021, the Black Entrepreneurship Loan Fund is a partnership between the government of Canada, Black-led business organizations, the Business Development Bank of Canada and financial institutions.
It provides loans of up to $250,000 to Black business owners and entrepreneurs in Canada.
There is also a pilot microloan program for Black entrepreneurs and business owners with smaller lending needs that offers smaller loans between $10,000 and $25,000.
What is the Black Entrepreneurship Loan Fund eligibility?
To be eligible for a loan through the Black Entrepreneurship Loan Fund, the applicant has to:
- self-identify as Black or Black-led (majority ownership of >51% by Black Canadians) business;
- be a legal resident of Canada — 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 old.
Eligible businesses can include start-ups and existing for-profit small businesses in Canada.
All businesses must have a business plan, business registration and recent financial statements or financial projections for start-ups.
If the applicant is eligible and receives a loan, the money can be used for:
- Capital investments — equipment, leasehold improvements, property improvement and office equipment;
- Working capital — inventory, payroll, lease payments, accounts management, rent and overhead costs;
- Short-term receivable financing (financing to service a contact).
How do I apply for the Black Entrepreneurship Loan Fund?
To apply for the Black Entrepreneurship Loan Fund, the online loan portal on the Federation of African Canadian Economics (FACE) site is the initial intake process.
Loan applicants can submit and communicate with a FACE client relationship manager on the progress of their loan request through that portal.
According to the federal government, the factors that'll be considered when assessing a Black Entrepreneurship Loan Fund application are eligibility, the capacity to repay, the entrepreneur's track record and personal factors, and more.
If you're wondering how long it will take to get money after submitting an application, the federal government said the timing will vary based on individual circumstances depending on the type of application and the due diligence that's required by the loan administrator.
This content is for general informational purposes only and does not constitute financial, investment, legal, tax or accounting advice.
This article's cover image was used for illustrative purposes only.