This business loan aims to break the cycle of underfunded Black Canadian entrepreneurs

Business loans can be hard to acquire, but this organization is breaking barriers to bring easier capital access and financing options to Black Canadian entrepreneurs.

In Canada, Black-owned businesses represent a mere 2.4 per cent of businesses across the country. The Federation of African Canadian Economics (FACE) hopes to change that. 

FACE is a national and bilingual Black-led, non-profit organization focused on providing resources and information to Black businesses across Canada, with an aim to accelerate wealth creation for Canadians of African descent.

Emerging out of a need to address the long-standing challenges Black entrepreneurs have faced when seeking to access capital, FACE works to distribute the Black Entrepreneurship Loan Fund (BELF), a component of the Black Entrepreneurship Program, in partnership with the Government of Canada, Black-led business organizations, and financial institutions. Since its inception, the Canadian government and its partners have invested $160 million into BELF. 

“Historically, many Black business owners struggled to obtain traditional financing due to systemic barriers, including biases and limited networks,” FACE Co-founder and CEO Tiffany Callender said to Now Toronto. 

“BELF was created to provide a dedicated funding stream to support Black entrepreneurs in building sustainable businesses and promoting economic empowerment within their communities.”

Designed to support entrepreneurs at various points in their business journey, the fund offers loans ranging from $10,000 to $250,000, depending on the size and stage of the business. 

“BELF provides access to much-needed capital that Black entrepreneurs need to expand their businesses, create jobs, and contribute to the broader Canadian economy,” Callender said. 

“This initiative aims to break the cycle of underfunding that has historically limited the success of Black-owned businesses.”

FACE’s support also extends to newcomers, as immigrants make up nearly 65 per cent of Canada’s Black entrepreneurial community.

The organization works with an extensive partner network from coast-to-coast-to-coast, offering support like educational resources, information sessions, and networking opportunities, all geared towards serving Black businesses at all stages of growth. If a BELF applicant receives a “no” today, FACE is committed to getting them ready for a “yes” in the future through its steadfast ecosystem of entrepreneurial support.

In its three years in action, BELF has provided more than $40 million in over 500 loans across the country. On average, BELF-supported businesses have expanded their capacity, created new jobs nationwide, generated taxable revenue and given Canada a return on their investment.

Ensuring that BELF-supported businesses prosper equals more nationwide economic activity such as Canadian-made goods and services, the creation of more jobs in our communities, neighbourhood revitalization, and maintaining Canada’s spot in a competitive global market, FACE says. The organization stresses one sure thing: when our Black businesses prosper, Canada prospers. 

President of Brampton-based Stewandy Cleaners Inc. Jacqueline Anderson described the $70,000 loan she received from FACE as a “Godsend,” saying that without it, her business would have collapsed. 

“It was a very, very big help,” Anderson said, “My business would have gone under.”

Anderson says attempting to get funding from Canadian banks was especially difficult as a double minority, being both Black and a woman. 

​​“It was so hard. I had to borrow from high interest rate people… And in this business, and most businesses, people sometimes take 60 days to 90 days before you even get paid. It was such a challenge for me,” Anderson said. 

Although Anderson still has a long road ahead of her, she is thankful for FACE’s contributions in growing her award-winning business.

Owner of North York-based African Textile and Clothing Centre Janet Owusu echoed a similar sentiment. She said that because of a loan she received from FACE, she’s now able to invest in bringing traditional goods, such as kente fabrics from Ghana and products from other countries in the African diaspora. 

“Right now, I have a whole lot of clothes on the way from Africa, which will be coming by the first week in October!”

Alinka Angelova, owner of Barrie-based Infinity Arts Productions, started up her business in 2019, with the intention of writing, directing and producing new and original musicals. 

Angelova describes the loan as a “great boost,” as it helped cover branding, inventory costs, costume and production fees.  

“It was really great working with the representatives. They were wonderful, very helpful. Any advice that I need, they would help me with that,” she said.  

“Also, getting the loan as well was a lot easier than I thought… this loan has helped to boost us and I’m just really thankful for that.”

BELF is not restricted to a specific industry, and is instead open to a broad spectrum of businesses, whether service-based or product-based. Callender emphasizes that the loan is available for any Black entrepreneur with an existing for-profit small business registered in Canada.  

“Additionally, the loan is available to both startups and existing for-profit small businesses in Canada, no matter their growth stage, helping a wide variety of entrepreneurs achieve success,” Callender added. 

In all, BELF has proven its importance for the growth and support of Black-owned Canadian businesses, as well as the overall economy. With over 125 different countries that make up Canada’s African and Black diaspora, the continuity of the program is essential to see more expansion and success amongst these businesses throughout the nation.

For more information on FACE or to submit a loan application, click here.