In recent months, Canadian banks have launched various programs to support Black-led businesses and ventures. These initiatives include loan programs and inclusion and diversity initiatives aimed at better serving Black Canadians and helping them advance their businesses. Here’s a list of the top 5 support programs for Black entrepreneurs offered by Canadian banks:
- RBC Black Entrepreneur Business Loan
This financial solution is available to eligible Black entrepreneurs in Canada who are looking to start, manage, or grow their businesses, with access to loans of up to $250,000.
Eligibility:- Applicants must self-identify as Black or as Black with another ethnicity.
- Must be a Canadian citizen or permanent resident.
- For businesses with two partners, the business must be majority Black-owned (≥50%).
- For businesses with more than two partners, the business must be at least 25% Black-owned (≥25%).
- BDC/RBC Black Entrepreneur Startup Program
Designed for Black entrepreneurs aged 18-39, this program offers startup loan financing, mentorship for up to two years, and access to resources and networking opportunities across Canada. The program is funded by RBC, with additional loan financing from BDC.
Eligibility Requirements:- Self-identify as Black and be a Canadian citizen or permanent resident aged 18-39.
- For businesses with two partners, the business must be majority Black-owned (≥50%).
- For businesses with more than two partners, the business must be at least 25% Black-owned (≥25%).
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- BMO for Black Entrepreneurs
This program provides loans of up to $250,000 using specialized lending criteria for Black entrepreneurs across Canada.
Eligibility:- Your business must be >50% majority-owned by a Black Canadian.
- Annual revenue must be <$10 million.
- Must be a legal resident of Canada or a legal entity owned and controlled by Canadian citizens.
- The business must be a for-profit organization.
- Email: businessbankingprograms@bmo.com
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- CIBC Black Entrepreneur Program Loan
Entrepreneurs can apply for up to $250,000 in financing to help start, grow, or elevate their businesses. The program provides access to expert advice and inspiring stories from business owners.
Requirements:- Maximum loan amount: Up to $250,000.
- Maximum loan terms:
- For equipment and leasehold improvements: Up to 10 years.
- For working capital loans: Up to 2 years.
- Repayment terms: First 12 months are interest-only; after 12 months, principal + interest.
- No penalty for early repayment.
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- TD Bank Black Customer Experience Strategy
TD Bank launched this strategy to enhance financial services and support for Black Canadians. As part of this initiative, the bank is expanding its Diverse Business segment teams to foster better relationships with Black communities and businesses. Black TD leaders, managers, and financial advisors across Canada are being trained to provide tailored financial advice and a personalized customer experience. In September 2021, TD announced a $10 million donation to the Black Opportunity Fund (BOF), which aims to create the world's largest permanent pool of capital for Black-focused, Black-led, and Black-serving community organizations, facilitating access to capital for Black-owned businesses.
Looking to start a business? Consider joining the Mwanzo Business Program, which guides Black aspiring entrepreneurs through the initial steps of launching a new venture.
