Federal government has opened the doors to a loan scheme that will offer financial aid to Black-owned businesses that frequently encounter problem in accessing capital.
The Black Entrepreneurship Loan Fund will offer loans of up to $250,000 for businesses that are majorly Black-owned, entrepreneurs for their startups or existing for-profit small businesses.
Also, social enterprises, partnerships and co-operative businesses are eligible for the financing.
While talking about the loan program, the government says applicants must possess a business number, business plan and financial statements, or project plans.
The Liberal government committed $33.3 million into the loan fund, while the remaining balance of the $291.3 million program comes from a $130-million injection from Business Development Bank of Canada, a Crown corporation, and $128 million split between Canada’s biggest banks and two credit unions.
The Federation of African Canadian Economics will disburse and administer the loans, which will initially be routed through BDC, and Alterna Savings and Vancity.
