Over 160M in Micro and Macro loans
Designed by Black professionals and financial experts, FACE prides itself on offering one of the most innovative lending plans in the country. Below is a breakdown of the different types of loans we offer.
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Black Entrepreneurship Loan Fund
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 will provide loans of up to $250,000 to support Black business owners and entrepreneurs across Canada and lay the foundation for future success and long-term change.
The loan program will fund existing businesses (to a maximum of $250,000) and start-ups (to a maximum of $50,000) under two programs; the micro loan pilot program and macro loan program.
All applicants applying to the micro or macro loan programs will need to provide the following documents with their application:
-Detailed business plan
-Up to date historical financial statements
-2 to 3 years financial projections
-Up to date T1 and T2 income tax returns with notice of assessments
-Personal Statement of Affairs (template available)
Click here for more information on required application documents and tools that can help.
Micro Loan Pilot Program
10k to 25k
About our Micro Loans
Alterna Savings and Vancity credit unions are partnered with FACE to deliver a micro-loan pilot program, administering micro-loans ranging from $10,000 to $25,000 in Ontario and British Columbia. Credit unions have long served underserved entrepreneurs, helping them become economically and socially empowered. Alterna Savings (Ontario) and Vancity (British Columbia) will fulfill approved loans in their respective provinces.
Macro Loan Program
25k to 250k
About our Macro Loans
FACE, in partnership with the Government of Canada and the Business Development Bank of Canada (BDC), will administer a macro-loan program with loans ranging from $25,000-$250,000. The Government of Canada has committed 30M to be adjudicated by FACE for loans ranging between $25,000-$100,000. BDC has committed $130M of its capital to partner with FACE to fund loans from $100,000-$250,000 and act as a fulfillment agent for the loan fund.
Terms & Conditions
Is the Black Entrepreneurship Loan right for me and my business?
These loans are for Canadian Black-owned businesses.
From $10,000 Up to $250,000
We offer loans up to $250,000 to be used for capital expenditure, working capital, or leasehold improvements.
Flexible Terms
Our interest rates are an average of 5.95%.
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
Loan Tenor:
– Up to 7 years
Requirements:
– Detailed business plan
– 24 months projected cashflow
– Business registration
– Up to date personal statement of affairs
– Up to date T1 and T2 income tax returns with notice of assessments
– Up to date historical financial statements
Micro loan requirements
Loan amount:
– $10,000-$25,000
Fees and interest rates:
– Prime +3%
– Administration fee $100 (once approved; can be deducted from loan proceeds)
Features:
– Interest only up to 12 months
Repayment terms:
– Up to 5 years
Requirements:
– Detailed business plan
– 24 months projected cashflow
– Business registration
– Up to date personal statement of affairs
– Up to date T1 and T2 income tax returns with notice of assessments
– Up to date historical financial statements
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 favor a black majority of no less than 51%.
1) Sole-Traders,
2) Corporations (Ltd, Inc),
3) Partnerships (limited & non-limited)
What businesses are considered start-ups?
FACE considers any business as 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 they have been in operations for more than 18 months and are able to provide their historic financial statements (T2).
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 or sole proprietors, and for-profit social enterprises and cooperatives. Businesses must have a business plan, business registration, and recent financial statements or financial projections.
Any Black business owners and entrepreneurs with questions, are encouraged to reach out to FACE for further details.
What businesses are not eligible under the Loan Fund?
Not-for-profit organizations are not eligible for loans.
What is eligible for financing under the Loan Fund?
Loans can be used for:
- Capital investments - equipment, leasehold improvements, property improvement, office equipment
- Working capital - Inventory, payroll, lease payments, accounts management, rent, overhead costs
- Short-term receivable financing (i.e. financing to service a contact)
Loan Breakdown
Start-up: A business operating for at least three (3) months but with less than twelve (12) months of consecutive sales.
Existing business: A business operating for more than 18 months and able to provide their historic financial statements (T2)
**NOTE: Both start-ups and existing businesses need to provide 2-3 year financial projections.
For more information, see our FAQ page.
Start-ups
Up to 50k
If you are a start up, funding released will be up to $50K.
