Updated March 2026 · Verified against Innovation, Science and Economic Development Canada guidelines
✓ First-Timer Friendly Loan Est. 2021
Loan Federal Active

Black Entrepreneurship Program

Innovation, Science and Economic Development Canada
Maximum Funding
Up to $250,000
Ongoing
Visit Official Program →
Difficulty
Moderate
Payment
Loan
Trend
Stable
First-Timers
Friendly ✓
Co-Funding
Varies
Black Entrepreneurship Program provides up to Up to $250,000 loans of $10,000 to $250,000 through FACE and partner banks including BDC to Black-led, majority-owned for-profit businesses — this is debt financing, not a grant, with repayment terms up to 7 years. Applications are accepted on an ongoing basis. (As of March 2026, verified against Innovation, Science and Economic Development Canada program guidelines)

Eligibility & Details

What this program funds and who can apply

Free

Program Description

Provides loans of $10,000 to $250,000 through FACE and partner banks including BDC to Black-led, majority-owned for-profit businesses — this is debt financing, not a grant, with repayment terms up to 7 years. A separate Ecosystem Fund provides non-repayable contributions to not-for-profit organizations delivering mentorship and training to Black entrepreneurs.

Eligibility Requirements

  • Self-identifies as Black and business is majority-owned (>51%) by Black Canadians
  • Canadian citizen or permanent resident
  • For-profit business (non-profits are ineligible for the Loan Fund)
  • Formally registered business (sole proprietorships without registration may be ineligible)
  • Demonstrates capacity to repay the loan with a viable business plan and financial projections
  • Proposed use of funds is eligible (working capital, equipment, expansion — not goodwill, debt restructuring, dividends)
Provinces
All Provinces
Industries
All
Business Stage
Startup Growth

Quick Assessment

Difficulty
Moderate
Competition
High
Est. Hours
30h
First-Timer
Friendly

Funding Details

Amount
Up to $250,000
Type
Loan
Level
Federal
Deadline
Ongoing

Program Scorecard

Competition, effort, and approval at a glance

Hybrid
Competition
High
Effort
~30 hours
Approval
Moderate
Accessibility
--/5
Competition
--/5
Approval Rate
--%

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What You Need to Get Approved
Everything reviewers look for — so you apply with confidence, not guesswork

How to Win

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

The approval rate is extremely low (4-14%), so invest heavily in your business plan and financial projections before applying. FACE assigns a dedicated client relationship manager -- build that relationship early. Start with a micro-loan ($10K-$25K through Vancity or Alterna) to establish a track record, then apply for a larger macro-loan. Note that 74% of recipients in recent years have been newcomers, and the fund explicitly prioritizes Black women and 2SLGBTQI+ entrepreneurs.

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Rejection Pitfalls 9

  • Incomplete or weak business plan lacking financial projections
  • Insufficient demonstration of capacity to repay the loan
  • Non-profit organizations (ineligible for Loan Fund)
+6 more pitfalls

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Success Profile

Successful recipients typically have: a well-developed business plan with realistic financial projections; existing revenue or strong proof of concept; clear use of funds tied to growth (equipment, inventory, working capital); Black ownership >51% with documented self-identification. Newcomers to Canada represent the largest recipient group (46-74% of loans). The fund prioritizes capacity to repay over collateral. Businesses at the growth stage with demonstrated traction tend to receive larger loans.

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Evaluation Criteria

Applications assessed on: Black Canadian self-identification and majority ownership (>51%), capacity to repay the loan (business viability and financial health), strength of business plan with realistic financial projections, intended use of funds aligned with eligible expenses, Canadian citizenship or permanent residency, and entrepreneur track record. FACE assigns a dedicated client relationship manager to each application. BDC co-reviews applications over $100K.

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Application Steps

1 Visit facecoalition.com/en/loans and review eligibility requirements
2 Create an account on the FACE loan portal
3 Complete the online application with business details and self-identification
+6 more steps

Required Documents 8

Business plan (detailed, with financial projections)
Business registration/incorporation documents
Recent financial statements (or projections for startups)
Proof of Canadian citizenship or permanent residency
Self-identification as Black or Black-led business (>51% Black ownership)
Government-issued photo ID
Personal guarantee documentation (may be required for principals)
General Security Agreement (may be required from the business)

Eligible Expenses 5

  • Capital investments (equipment, machinery, technology)
  • Working capital (inventory, operational costs, payroll)
  • Business expansion costs (new locations, renovations)
  • Marketing and business development
  • Professional services (legal, accounting, consulting)

Ineligible Expenses 7

  • Goodwill purchases
  • Restructuring conventional business debts
  • Dividend payouts
  • Shareholder loan repayment or issuance
  • Bonuses, stock buybacks, or option issuance
  • Increase to shareholder or management committee compensation
  • Personal expenses unrelated to the business

Intake Periods

Continuous intake year-round through the FACE portal (facecoalition.com). No competition rounds or fixed deadlines. The microloan pilot ($10K-$25K through Vancity and Alterna) concluded March 31, 2025 and has not been extended. Loans of $25,000+ continue to be accepted and processed.

Deadline Notes

The Loan Fund has no fixed deadline and accepts applications year-round through facecoalition.com. The Ecosystem Fund for nonprofits opens in regional waves -- Southern Ontario closed Jan 9, 2026; Quebec closed Dec 5, 2025; BC closed Nov 28, 2025. New regional intakes expected periodically through 2030. Apply to the Loan Fund when your business plan and financials are strongest -- do not rush an incomplete application given the low approval rate.

Open Application Portal →

Ineligible Organizations

  • Non-profit organizations (ineligible for Loan Fund; may qualify for separate Ecosystem Fund)
  • Businesses not majority-owned (>51%) by Black Canadians
  • Businesses owned by non-residents (must be Canadian citizen or permanent resident)
  • Unincorporated sole proprietorships without formal business registration

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Compatible Programs

Futurpreneur Black Entrepreneur Startup Program Black Opportunity Fund IRAP (NRC Industrial Research Assistance Program) SR&ED Tax Credits CanExport SMEs RBC Black Entrepreneur Program DMZ Black Innovation Programs Provincial small business grants
Combined Funding Potential See your total funding potential

Clawback Risk

Medium Risk

Moderate. All loans are secured by personal guarantees. If the business cannot repay, the guarantor is personally liable for the outstanding balance. Standard loan default provisions apply including potential legal action for recovery. No forgiveness provisions — this is debt financing, not a grant.

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Stacking amounts, clawback details, government stacking limits, and tax implications
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How Black Entrepreneurship Program Compares

Side-by-side with similar programs

Free
Program Amount Difficulty Payment Deadline
Black Entrepreneurship Program Up to $250,000 Moderate Loan Ongoing
Futurpreneur Black Entrepreneur Start... Up to $75,000 Moderate Loan Ongoing
NRC IRAP Clean Technology Program $100,000–$500,000 Hard Mixed (Advance + Reimb.) Ongoing
CanExport SMEs Up to $50,000 Moderate Mixed (Advance + Reimb.) Annual intake window....

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