Funding for Black entrepreneurs in Canada

Black entrepreneurs in Canada can look for funding in two main places: the federal Black Entrepreneurship Program, which offers business loans through its loan fund and pays Black-led organizations to deliver mentoring and training, and the general programs open to any business that qualifies. Most of the help is loans and support rather than grants. Start with the programs for Black entrepreneurs and the funding check, then contact a Black-led business organization near you.

What is the Black Entrepreneurship Program?

The Black Entrepreneurship Program is a federal program with two main parts:

The Black Entrepreneurship Loan Fund, which lends to Black business owners and entrepreneurs across Canada. It is run by the Federation of African Canadian Economics together with BDC.
The Ecosystem Fund, which funds Black-led not-for-profit organizations that support entrepreneurs with advice, mentoring, training and networking.

The loan fund is for businesses. The ecosystem side is for organizations: as a business owner, you benefit by using the services those organizations offer, many of them free. If you run a Black-led non-profit that supports entrepreneurs, check the program page for whether your organization can apply.

How does the loan fund work?

It is a loan, so you repay it with interest. It can help businesses that have trouble getting credit from a bank, but you still need to show the business can repay. Lenders usually ask for:

A business plan that explains what you sell, who buys it and how you will reach them.
Cash flow projections for the months ahead.
Financial statements or bank records if the business is already running.
What the money is for, with quotes where you can get them.

Each program sets its own loan sizes, terms and eligibility, and these can change. Check the program page for the current details instead of relying on what you read elsewhere.

Who counts as a Black-owned business?

Each program defines it its own way. Some look at the share of the business owned by Black people, some at who controls and runs it, and some at both. Some programs open only at certain times or only in certain regions. Read the definition on the program page and ask the delivery organization if your situation isn't clear, for example a business with several partners.

What do Black-led business organizations offer?

Many organizations across Canada support Black entrepreneurs, some with funding from the Ecosystem Fund. Depending on the organization, you can find:

Business training, from first steps to bookkeeping, marketing and pricing.
Mentoring and coaching with experienced business owners.
Help preparing a loan application and a business plan.
Networks that connect you with buyers, suppliers and other founders.
Pitch competitions and small grants, from time to time.

Advisers at these organizations often know local programs that are hard to find online. They can also tell you which general programs are a good fit.

Which general programs can Black entrepreneurs use?

All of them, if the business qualifies. A set-aside program is an extra option, never a limit. Look at these too:

Start-up programs for new businesses, in the guide to funding to start a business.
Small business loans and advice from lenders like BDC; see the small business funding guide.
Hiring programs that pay part of wages; see hiring a student with a wage subsidy.
Digital and export programs, in funding to go digital and export funding for your first market.

Browse start-up and growth, or everything for small businesses.

How do I get ready to apply?

Decide what the money is for. A clear project is easier to fund than a general need for cash.
Know your business structure. Whether you are a sole proprietor or incorporated affects which programs fit.
Get your numbers in order. Separate business and personal accounts, and keep records up to date.
Read the eligibility rules. The guide to reading eligibility rules helps.
Use a checklist. The grant application checklist works for loan applications too.
Don't spend first. Many programs don't cover costs from before approval; see apply before you spend.

Frequently asked questions

Is the Black Entrepreneurship Program a grant?

The loan fund is a loan that you repay. The ecosystem side funds organizations, which offer support to entrepreneurs. See the difference between grants, loans and tax credits.

Where do I apply for a loan from the Black Entrepreneurship Loan Fund?

Through the loan fund itself, which the program page links to. A Black-led business organization can help you prepare.

Can a Black-owned business apply to general programs too?

Yes. Programs for Black entrepreneurs are an extra option. A Black-owned business can apply to any general program it qualifies for.

Can I combine the loan with other funding?

Often, yes, but each program has its own rules. See can you combine grants? and ask the lender before you accept a second offer.

This article explains how funding generally works. Each program sets its own rules, amounts and dates: check the program page and the funder’s site before you apply. A CanGrant editor hasn’t reviewed this article yet.