Question Period Note: Black Entrepreneurship Funding

What new funding is the Government of Canada providing to Black-led businesses?

• On May 31, the Government of Canada announced that the Black Entrepreneurship Loan Fund is now accepting loan applications.

• The Loan Fund is a key part of the Black Entrepreneurship Program, which will invest up to $350.8 million over four years through a partnership with Canadian financial institutions.

• 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.

• With the first-ever Black Entrepreneurship Program, the Government of Canada is working to address these long-standing, systemic barriers.

SUPPLEMENTARY MESSAGES

• The Black Entrepreneurship Loan Fund seeks to address the specific systemic barriers Black business owners have too often faced when seeking financing.

• The Business Development Bank of Canada (BDC), Alterna Savings and Vancity will be the first partner financial institutions in the initial launch, with BDC committing $130 million to the loan fund.

• Vancity and Alterna Savings will also pilot a microloan program for Black entrepreneurs and business owners in British Columbia and Ontario seeking microloans between $10,000 and $25,000.

• On February 25, 2021, the government announced that its $33.3 million investment in the Loan Fund will be administered by the Federation of African-Canadian Economics (F.A.C.E.), a federally incorporated not-for-profit organization.

• As part of Budget 2021, the government proposes to invest up to an additional $51.7 million over four years, starting in 2021-22, in this important program, to add funds to the Ecosystem Fund, so that more supports can be available to Black-led businesses and Black entrepreneurs.

The Black Entrepreneurship Program (BEP) is an investment of up to $350.8 million over four years, in partnership with Canadian financial institutions, that will help address the systemic barriers that Black business owners and entrepreneurs face, providing targeted support during the COVID-19 pandemic and on the road to recovery.

Originally announced in September 2020, BEP is composed of three main components, with funding as follows:

• Up to $53 million (and an additional $51.7 million through Budget 2021) to develop and implement a new National Ecosystem Fund to support Black-led business organizations across the country. It will help Black business owners and entrepreneurs access funding and capital, mentorship, financial planning services and business training.
• Up to $33.3 million in support through the new Black Entrepreneurship Loan Fund that will provide loans of between $25,000 and $250,000 for Black business owners and entrepreneurs. The government is also partnering with financial institutions, including BDC, RBC, BMO, Scotiabank, CIBC, National Bank, TD, Vancity and Alterna Savings to make up to $291.3 million available in additional lending support.
• Up to $6.5 million to create and sustain a new Black Entrepreneurship Knowledge Hub that will collect data on the state of Black entrepreneurship in Canada and help identify Black entrepreneurs’ barriers to success as well as opportunities for growth. The Hub will be run by Black-led community and business organizations, in partnership with educational institutions.

In addition to increasing funding available to Black entrepreneurs through the Black Entrepreneurship Loan Fund, the BEP will help Black business owners and entrepreneurs by strengthening business and mentorship supports in their communities through Black-led business organizations (National Ecosystem Fund) and by better capturing the experiences and challenges of doing business as a Black Canadian through the new Black Entrepreneurship Knowledge Hub.

The Black Entrepreneurship Program is designed to broadly serve Black business owners and entrepreneurs across Canada through lending support, business plan development, mentorship or otherwise. The call for concepts for both the Ecosystem Fund and the Knowledge Hub launched on November 23, 2020 and are now closed.

One of the reasons behind the new funding under the National Ecosystem Fund is the tremendous response to the call for concepts that was launched in fall 2020.

F.A.C.E. consists of Black business and community leaders from several not-for-profit organizations, including:
• Africa Centre (Alberta)
• Black Business and Professional Association (BBPA)
• Black Business Initiative (BBI)
• Cote des Neiges Black Community Association
• Groupe 3737

On May 31, 2021 the Prime Minister and the Minister of Small Business, Export Promotion and International Trade announced that the Black Entrepreneurship Loan Fund is now accepting loan applications.

Prime Minister Justin Trudeau and Minister Ng also announced the launch of a pilot microloan program for Black entrepreneurs and business owners in British Columbia and Ontario seeking microloans between $10,000 and $25,000. The pilot, delivered by FACE in partnership with credit unions Vancity and Alterna Savings, will help address a critical gap in the marketplace for Black businesses that need smaller financial support to start up and grow.

None