Black Entrepreneurship Loan Fund

Description

The Black Entrepreneurship Loan Fund is a partnership between the Government of Canada, Black-led business organizations, the Business Development Bank of Canada and other 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).

Terms & Conditions

Flexible Terms

Up to 12 months postponement of principal payments.

Conditions may apply.

Macro Loan Requirements

 

Loan amount:

- $25,000 to $250,000

Fees and interest rates:

- Subject to borrowers risk rating.

Features:

- Interest only up to 12 months (conditions may apply).

Loan Tenor:

- Principal amortization over 60-month period

Requirements:

- Detailed business plan

- Two to three-year financial projections showing Cash Flow, Balance Sheet & Income Statement

- Business registration

- Up-to-date personal statement of affairs

- Up-to-date tax returns for the business (T2 Income Tax Return & Notice of Assessment) and the business owner (T1 Income Tax Return & Notice of Assessment)

- Up-to-date historical financial statements showing Balance Sheet & Income Statement

Micro Loan Requirements

 

Apply for a Business Loan

Eligibility

Who is eligible under the Black Entrepreneurship Loan Fund?

 

Eligible Individuals

Eligible Individuals (shareholders and guarantors) must be:

a) at least 18 years old,

b) identify as black and

c) be, at minimum, a permanent resident of Canada.

 

Business Ownership

Eligible Businesses must be majority black-owned.

Where there are multiple shareholders: majority shareholdings and voting rights are to favour a black majority of no less than 51%.

 

Eligible Business Types:

1) Sole-Traders,

2) Corporations (Ltd, Inc),

3) Partnerships (limited & non-limited)

What businesses are considered start-ups?

 

FACE considers any business a start-up if it has been operating for at least three (3) months and has less than twelve (12) months of consecutive sales.

What businesses are considered existing businesses?

 

FACE considers any business as existing if it has been in operation for more than 18 months and can provide its historical financial statement (showing Balance Sheet & Income Statement) and tax returns (T2 Income tax return and Notice of Assessment)

Who is eligible under the Black Entrepreneurship Loan Fund?

 

Eligible businesses may include start-ups and existing for-profit small businesses in Canada. Such businesses can be corporations, sole proprietors, and for-profit social enterprises and cooperatives. Businesses must have a business plan, registration, and recent financial statements or projections.

For further details, black business owners and entrepreneurs with questions are encouraged to contact FACE.

What businesses are not eligible under the Loan Fund

 

Not-for-profit organizations are not eligible for loans.

 

Businesses where black ownership is less than 51%

What is eligible for financing under the Loan Fund?

Loans can be used for:

a) Capital investments - equipment, leasehold improvements, property improvement, office equipment

b) Working capital - Inventory, payroll, accounts management, rent, overhead costs

c) Short-term receivable financing (i.e. financing to service a contract)