Black Entrepreneurship Loan Fund

To be eligible for BELF, an applicant must:

• Self-identify as Black or Black-led (majority ownership of more than 51% by Black Canadians).
• Be a legal resident of Canada: Canadian citizen, permanent resident, conventional refugee (for micro loans only) or a legal entity owner and controlled by a Canadian citizen or citizens.
• Be a minimum of 18 years old.
• Be a start-up or existing for-profit business.
• Be a corporation, sole proprietorship, for-profit social enterprise, or a cooperative.
• Have a business plan, business registration, and recent financial statements (or financial projections for start-ups).

Non-profit organizations are not eligible for loans under this program. 
 

Loans can be used for:

• Capital investments: equipment, leasehold improvements, property improvements, office equipment
• Working capital: inventory, payroll, lease payments, accounts management, overhead costs
• Short-term receivable financing (for example: financing to service a contract)

Loans cannot be used for:

• Financing items such as goodwill
• Restructuring conventional business-related debts
• Dividend payout
• Shareholder loan repayment or issuance
• Bonuses
• Stock buybacks
• Increase to shareholder or management committee compensation

Two credit unions (Alterna Savings and Vancity) will be offering micro-loans of between $10,000 and $25,000 to Black entrepreneurs in Ontario and British Columbia. The Government of Canada and F.A.C.E. (Federation of African-Canadian Economics) will review the success of the pilot project with a goal of expanding it across Canada.

The Federation of African-Canadian Economics (F.A.C.E.)  is the designated administrator. It is a federally incorporated on-profit created by a group of Black Business Support Organizations across Canada. Those organizations are:

• Côte des Neiges Black Community Association 
• Groupe 3737 
• Black Business Initiative 
• Black Business and Professional Association
• Africa Centre 

The Business Development Bank of Canada (BDC) will partner with F.A.C.E. to deliver the Loan Fund. In the coming months, other financial institutions will be onboarded as partners and continue working together to better serve Black Canadian business owners and entrepreneurs. 
 

F.A.C.E can provide loans of up to $100,000; loans above this amount will be risk-shared with BDC. The micro-loan program offered by Alterna and Vancity credit unions will offer loans between $10,000 and $25,000.

The application portal, accessible on the F.A.C.E. website, opened to applications on May 31, 2021. Through the portal, loan applicants will be able to submit an application and also communicate with a F.A.C.E. client relationship manager on the progress of their application.  

Applicants who are not approved for a loan will be referred to regional F.A.C.E. member organizations/affiliates for help with capacity building to support their re-application at a later date.

Alternatively, you can visit the Government of Canada Business Benefits Finder which provides the opportunity to explore other available funding options. 

The Regional Development Agencies provide a variety of business support services and deliver the Ecosystem Fund which is part of the Black Entrepreneurship Program .