Black Entrepreneurship Loan Fund: Micro Loan Pilot Program

By mmuise
Description:

The Black Entrepreneurship Loan Fund, a component of the Black Entrepreneurship Program (BEP), is a partnership between FACE, the Government of Canada, the BDC and private sector financial institutions. The Fund provides micro-loans ranging from $10,000 to $25,000 in Ontario and British Columbia.
Alterna Savings (Ontario) and Vancity (British Columbia) will fulfill approved loans in their respective provinces.


Comments on Funding:

Funding will take the form of a loan between $10,000 and $25,000.

Loan terms and conditions:
1. Fees and interest rates: Prime +3%
2. The administration fee is $100 (once approved; can be deducted from loan proceeds)
3. Interest only up to 12 months;
4. Repayment terms: up to 5 years.

Deadline: Continuous Intake
Eligibility:

Applicants must:

  • be at least 18 years old;
  • identify as black;
  • be at minimum a permanent resident of Canada;
  • apply in the name of a business based in Ontario or British Columbia that is:
    a) a Sole-Trader;
    b) a Corporation (Ltd, Inc);
    c) a Partnership (limited & non-limited).
    Eligible Businesses must be majority black owned. Where there are multiple shareholders: majority shareholdings and voting rights are to favor a black majority of no less than 51%.
Application Steps:

Applicants must:

1. create an account on the FACE website;

2. submit the application form and the required documentation.

Documentation Needed:

Applicants must submit:
1. detailed business plan;
2. 24 months projected cashflow;
3. business registration;
4. up to date personal statement of affairs;
5. up to date t1 and t2 income tax returns with notice of assessments;
6. up to date historical financial statements.

Other Things to Note:

Link it to ISED's Black Entrepreneurship Program: Black Entrepreneurship Loan Fund entry. It provides a few additional details and the program is available just in Ontario and British Columbia.

Program Contact: https://facecoalition.com/
About the author
mmuise