FACE — Black Entrepreneurship Loan Fund

Insider Tip

Approval rates are very low (4–14%), so treat the business plan as your primary investment — hire a business plan writer or spend significant time on financial projections before applying. FACE assigns a dedicated client relationship manager to guide you through the process, which is a real advantage — use them proactively. Loans above $100,000 involve BDC risk-sharing and require stronger fundamentals; start-ups should generally aim for the $25,000–$75,000 range. Note that this is DISTINCT from the BEP ISED policy overview in the catalog (ID #2) — FACE is where Black entrepreneurs actually apply for capital. The interest rate of approximately 5.95% is typically below prime, making this one of the most accessible debt options for Black entrepreneurs who may not qualify for conventional bank financing.

Rejection Pitfalls 7

• Business plan lacks credibility — projections are unrealistic or insufficiently detailed
• Business is not majority-owned (>51%) by Black Canadians
• Applicant is not a Canadian citizen or permanent resident

Success Profile

Black-majority-owned for-profit business with a credible business plan, clear revenue model, and realistic financial projections. Both start-ups and established businesses qualify, but strong financial discipline and documentation are essential given the 4–14% approval rate. Most successful applicants have clear use of funds (specific equipment purchase, inventory, working capital for a confirmed contract) rather than vague general-purpose requests.

Evaluation Criteria

FACE evaluates applications on: (1) eligibility — Black majority ownership, citizenship, for-profit structure; (2) business plan quality — market analysis, competitive positioning, management team credentials; (3) financial projections — realistic revenue assumptions, cash flow, and debt service capacity; (4) use of funds — specific, productive, and consistent with eligible categories; (5) overall creditworthiness — ability to repay based on business fundamentals. A dedicated client relationship manager guides applicants through the process.

Application Steps

Required Documents 8

Eligible Expenses 3

• Capital investments — equipment, machinery, leasehold improvements
• Working capital — inventory, payroll, rent, utilities, operating overhead
• Short-term receivable financing — bridging gaps between invoice issuance and collection

Ineligible Expenses 5

• Goodwill or intangible asset purchases
• Debt restructuring or refinancing of existing obligations
• Dividends, shareholder repayments, or stock buybacks
• Compensation increases or executive bonuses
• Personal expenses unrelated to business operations

Intake Periods

Continuous — no intake windows or application deadlines. Applications accepted year-round at facecoalition.com.

Deadline Notes

Rolling intake — no fixed deadline. Applications accepted year-round via facecoalition.com. The microloan pilot ($10K–$25K via Alterna Savings and Vancity) concluded March 31, 2025; macro loans ($25K+) continue under the renewed federal Black Entrepreneurship Program.

Open Application Portal →

Ineligible Organizations

• Not-for-profit organizations
• Organizations not majority-owned (>51%) by Black Canadians
• Organizations owned by non-Canadian citizens or non-permanent residents
• Businesses with ineligible use of funds (see ineligibleExpenses)

Compatible Programs

Clawback Risk

Low Risk

Standard commercial loan — no clawback in the grant sense. If the borrower defaults, FACE and BDC pursue normal loan recovery mechanisms (collections, security enforcement). Maintain repayment discipline to avoid this.