{"id":838447,"date":"2022-08-24T12:55:26","date_gmt":"2022-08-24T16:55:26","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=838447"},"modified":"2026-01-16T17:40:50","modified_gmt":"2026-01-16T22:40:50","slug":"business-loans-racialized-persons","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/business-loans\/business-loans-racialized-persons","title":{"rendered":"Business loans, grants and other funding for racialized persons in Canada"},"content":{"rendered":"

Whether you\u2019re a new business owner or a seasoned entrepreneur, building a business requires hard work. Thankfully, there are big payoffs \u2014 and not just for you, but for the overall economy. According to the Department of Innovation, Science and Economic Development<\/a> in 2019, small businesses employed more than two-thirds (68.8%) of the Canadian workforce and contributed more than a third to the country\u2019s gross domestic product (the total market value of all goods and services produced by Canadians).<\/p>

Many smaller companies are owned and operated by racialized persons. Despite making a significant contribution to their communities, these racialized business owners face unique, and sometimes pervasive, barriers that prevent them from achieving their full potential.<\/p>

To help, many governmental departments, associations and organizations have stepped in to lend a hand \u2014 and some money. Whether you\u2019re a black entrepreneur or a business owner that identifies as a racialized person, here are the grants and business loan programs available to you.<\/p>

Business loans for black entrepreneurs and racialized persons<\/h3>

There are many business loans available to entrepreneurs in Canada and any business owner operating in Canada can apply for these loans. To help deconstruct some of the barriers facing visible minorities, there are also a few funding programs specifically for racialized groups in Canada. Here are the top three to consider:<\/p>

Black Entrepreneurship Program (BEP)<\/strong><\/h4>

The Black Entrepreneurship Program (BEP) is a partnership between the Government of Canada, Black-led business organizations, and financial institutions totalling up to $265 million worth of investment over four years. The BEP also includes a Black Entrepreneurship Knowledge Hub to help identify barriers to success and opportunities for growth.<\/p>

Through the Black Entrepreneurship Loan Fund, a component of the BEP, black entrepreneurs and business owners can apply for loans of up to $250,000 through the Federation of African Canadian Economics (FACE).<\/p>

To apply for the Black Entrepreneurship Loan Fund, you\u2019ll need to supply a business plan, up-to-date financial statements, financial projections for two to three years, up-to-date income tax returns (T1 and T2) with notice of assessments and a Personal Statement of Affairs.<\/p>

Check out more about the Black Entrepreneurship Program here<\/a>.<\/p>

Canada Small Business Financing Program (CSBFP) Loan<\/strong><\/h4>

The Canada Small Business Financing Program (CSBFP) offers loans up to $1.15 million for startups and small businesses that gross $10 million, or less, per year. You can apply for this loan through most major banks including TD Canada Trust, CIBC, Scotiabank and BMO. The amount you qualify for ultimately depends on how the bank evaluates your loan application and credit score. Learn more about the CSBFP loan. <\/a><\/p>

Aboriginal Entrepreneurship Program: Access to Capital<\/h4>

The Aboriginal Entrepreneurship Program is designed to offer Indigenous entrepreneurs and business owners in Canada access to business opportunities and up to $99,999 in funding. The program is managed through the National Aboriginal Capital Corporations Association (NACCA). Funds are distributed through a network of 59 Aboriginal Financial Institutions (AFIs) across Canada. Learn more about how the program works here<\/a>.<\/p>

Business loans for young entrepreneurs<\/h3>

Futurpreneur Canada<\/strong><\/strong><\/h4>

Canadian citizens or permanent residents between the ages of 18 and 39 could qualify for a loan of up to $20,000 from Futurpreneur Canada, a non-profit organization dedicated to helping young entrepreneurs grow their businesses. If you need additional funding, Futurpreneur Canada has partnered with BDC so you can apply for an additional $40,000 of funding.<\/p>

Non-governmental loans for racialized business owners<\/h4>

Virtually all business owners in Canada can also apply for loans through banks, credit unions and private lenders. However, there are some financial institutions with specific lending programs geared towards black entrepreneurs, young adults, women-led companies and businesses owned by racialized persons.<\/p>

For example, Boundless Accelerator offers Canadian women between $5,000 and $10,000 in funding to put towards business scale-up services through the Rhyze Up! program<\/a>.<\/p>

Telus offers an interesting program called STORYHIVE<\/a> to fund content creators with a desire to start or expand content specifically for racialized communities in British Columbia and Alberta.<\/p>

Compare business loan options you might qualify for in the table below.<\/p>

Compare other small business loan options for Canadians<\/h3>

The following business loans are available to all business owners, as long as you meet the lender\u2019s eligibility criteria. Eligibility typically centres on business-related factors such as a required minimum business income per fiscal year, your business must have been operational for a certain number of months or years, and you must have a minimum credit score, among other factors.<\/p>

To find a business loan that best fits your needs, check out our loan comparison guide:<\/p>

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