How to Start in Canada

How to Start Getting Funding as a Black Entrepreneur in Canada

The Black Entrepreneurship Loan Fund lends $25,000–$250,000 through FACE. Who qualifies, what it covers, and how to apply.

Written November 5, 2026 · 13 min read

Applies in: across Canada

The federal Black Entrepreneurship Program has one part that puts money directly into a Black-owned business: the Black Entrepreneurship Loan Fund. It lends from $25,000 to $250,000 through the Federation of African Canadian Economics (FACE), in partnership with the Business Development Bank of Canada (BDC). It is a repayable loan, not a grant. Most of the confusion about Black entrepreneur funding in Canada comes from mixing this loan up with the program's other parts, which do not pay businesses at all. This guide follows the official federal FAQ step by step, so you apply through the right door with the right papers the first time.

The path in one paragraph

First, check the eligibility test: your business must be majority Black-owned, more than 51%, by Black Canadians, you must be at least 18 and a legal resident of Canada, and the business must be for-profit. Then decide how much you need and what it will pay for, because the fund lends from $25,000 to $250,000 and only for capital investments, working capital, and short-term receivable financing. Get your business plan, business registration, and financial statements or projections ready. Apply through the FACE loan portal. FACE is the initial entry point for every applicant. If you are 18 to 39 and starting out, check Futurpreneur's Black Entrepreneur Startup Program as well: it lends up to $75,000 with mentorship. And do not chase that fund as a business grant. It funds the organizations that support you, not your business.

Step 1: Check the eligibility test before you do anything else

The official FAQ lists three conditions on the applicant. You must self-identify as Black or Black-led, with majority ownership of more than 51% by Black Canadians. You must be a legal resident of Canada: a Canadian citizen or permanent resident, or a legal entity owned and controlled by a Canadian citizen or citizens. And you must be at least 18 years old.

The business must be for-profit. Eligible businesses include start-ups and existing for-profit small businesses in Canada, among them corporations, sole proprietors, and for-profit social enterprises. Not-for-profit organizations are not eligible for loans under the fund. If your organization is a not-for-profit, the Loan Fund is the wrong door. That fund is the part of the program that supports not-for-profit Black-led business organizations, and Step 6 covers it.

Check the ownership figure honestly before you apply. "Majority" here is a hard number, more than 51%, not a rough sense that the business is Black-led. If the ownership split does not clear that bar, the application will fail on eligibility, and the time is better spent fixing the ownership structure first or looking at a mainstream loan route.

Step 2: Decide how much you need, and what it will pay for

The fund lends from $25,000 to $250,000. FACE itself lends up to $100,000; loans above that amount are risk-shared with the Business Development Bank of Canada. The fund is a $160 million investment: $30 million from the federal government and $130 million from BDC.

The loan can pay for capital investments such as equipment, leasehold improvements, property improvement, and office equipment. It can also cover working capital, from inventory and payroll to lease payments, accounts management, rent, and overhead costs. Short-term receivable financing is the remaining use, for servicing a contract.

It cannot be used for a list the FAQ states explicitly. That list covers goodwill, restructuring conventional business-related debts, dividend payouts, shareholder loan repayment or issuance, bonuses, stock buybacks, option issuance, and an increase to shareholder or management committee compensation. The list is not exhaustive, and the FAQ says to speak with your account manager when in doubt. Work out which side of that line your spending falls on before you apply, because an application built around an ineligible use is a wasted application.

One more floor to know: the fund previously ran a pilot microloan program for loans between $10,000 and $25,000 through FACE, Vancity, and Alterna Savings. That pilot concluded on March 31, 2025 and has not been extended. Applications for $25,000 and above continue to be accepted and processed. If you need less than $25,000, the Loan Fund is not the route. Step 5 covers the Futurpreneur option.

Step 3: Get the paperwork ready

The FAQ names the paperwork your business must have: a business plan, business registration, and recent financial statements, or financial projections for a start-up. Gather those before you open the portal, rather than starting an application and stalling halfway through.

The business plan is where the Step 2 decision shows up: what the money is for, in the eligible categories, and how the business will repay a loan. The financial statements or projections are what FACE and BDC underwrite against. If your statements are out of date or your projections are guesses, fix them first. The Black-led support organizations the program funds exist to help with exactly this preparation, and Step 6 explains how to reach them.

Step 4: Apply through the FACE loan portal

The FACE loan portal is the application route. The FAQ describes the portal as the electronic intake and the initial entry point for interested applicants, and says applicants can submit through it and communicate with a FACE client relationship manager on the progress of their loan request.

FACE is the legal entity designated to administer the government's contribution to the loan fund. It is a federally incorporated not-for-profit created by a group of Black business support organizations from across Canada. The loan fund started accepting applications on May 31, 2021.

Processing is shared between FACE and BDC. FACE is the initial entry point for all Black-owned enterprises interested in applying: loan applications are reviewed by FACE, and the underwriting process is shared with BDC. On turnaround time, the FAQ gives no fixed figure. It says FACE is committed to turning applications around in a timely manner, and that the time depends on the type of application and the due diligence required, so timelines vary by individual circumstance. Do not plan around a turnaround time you have not been given for your own file; ask your FACE client relationship manager for the current timeline when you apply.

If your application is not approved, the FAQ says FACE intends to refer you to corresponding regional FACE member organizations and affiliates for further capacity building, to support a reapplication later. The Business Benefits Finder, run by the federal government, is the other route the FAQ names for exploring funding that might suit you better.

Step 5: If you are 18 to 39, check Futurpreneur's Black Entrepreneur Startup Program too

Futurpreneur's Black Entrepreneur Startup Program (BESP) is the second federal-adjacent route, and it fits a different stage. It offers a flexible, equity-free loan of up to $75,000, including financing from BDC, to start or buy a business, plus free mentoring for up to two years and access to a Canada-wide network of Black entrepreneurs.

To be eligible, you must self-identify as Black, be a Canadian citizen or permanent resident aged 18 to 39, physically reside in Canada, and be looking to launch a business or have been operating full time for 24 months or less. Futurpreneur states plainly that it does not provide grants to Black entrepreneurs at this time. BESP is a collateral-free loan supplemented by mentorship.

The split inside the $75,000 is up to $25,000 from Futurpreneur and up to $50,000 from BDC. On the Futurpreneur portion, interest is charged at RBC's prime rate plus 3%, with interest-only payments for the first year and principal repaid in equal monthly installments over the remaining four years, and a one-time loan management fee of 1% of the total loan amount at disbursement. The BDC portion carries its own terms, including BDC's floating base rate plus 1.65% and a $50 processing fee. Confirm the current rates on Futurpreneur's page before you apply. Prime moves, and the rate in your loan agreement is the one that binds you.

Step 6: Use the Ecosystem Fund's services — do not apply to it for money

The Black Entrepreneurship Program has three components: the Loan Fund, the Knowledge Hub, and the Ecosystem Fund. The last of the three backs not-for-profit Black-led business organizations that run mentorship, financial planning, business training, and networking. It was renewed along with the rest of the program: in the 2024 Fall Economic Statement the program was allocated an additional investment of up to $189 million over five years, from 2025 to 2030, including up to $105.4 million for the Ecosystem Fund, up to $7.5 million for the Knowledge Hub, and up to $67 million for the Loan Fund.

That renewal money does not reach your business as a cheque. It flows through the regional development agencies to organizations, and the organizations use it to run the services that make a loan application stronger: a business plan reviewed by someone who has seen hundreds, financial planning help, training, and a network of other Black entrepreneurs. If you are stuck on Step 3's paperwork, the practical move is to find the Black-led business support organization in your region that the fund supports and use its services. That is the fund working for you, just not as a payment.

Since launching in 2021, the program has supported more than 24,000 businesses and approved more than 800 loans totalling $70.6 million, according to a federal announcement from October 2025. Those are program totals, not a promise about any individual application.

Before you go: the checks that save a second application

First, the ownership test clears: more than 51% Black-owned by Black Canadians, you are at least 18 and a legal resident of Canada, and the business is for-profit, not a not-for-profit. Second, the amount you need is $25,000 or more, and what it will pay for falls in the eligible categories, capital investment, working capital, or short-term receivable financing, and not in the excluded list. Third, you have a business plan, business registration, and recent financial statements or projections for a start-up.

Fourth, you are applying through the FACE loan portal, and you know FACE is the initial entry point and BDC shares the underwriting above $100,000. Fifth, if you are 18 to 39 and starting out, you have also checked Futurpreneur's Black Entrepreneur Startup Program and its $75,000 loan, and you know it is a loan, not a grant. Sixth, you have not applied to that fund for business money, because it funds the organizations that support you, and you have found the one in your region instead.

Related guides

From eligibility check to loan application, in six moves

  1. Check the eligibility testThe business must be majority Black-owned — more than 51% — by Black Canadians, the applicant must be at least 18 and a legal resident of Canada, and the business must be for-profit.
  2. Size the loanThe fund lends from $25,000 to $250,000. FACE provides loans of up to $100,000; loans above that amount are risk-shared with the Business Development Bank of Canada.
  3. Gather the paperworkA business plan, business registration, and recent financial statements — or financial projections for a start-up.
  4. Apply through the FACE loan portalThe FACE portal is the electronic intake and the initial entry point for every applicant. FACE reviews the application and you speak with a FACE client relationship manager about its progress.
  5. If you are 18 to 39, check Futurpreneur tooFuturpreneur's Black Entrepreneur Startup Program offers a flexible, equity-free loan of up to $75,000, including BDC co-financing, plus up to two years of mentorship.
  6. Use the Ecosystem Fund's services, not its moneyThe Ecosystem Fund pays not-for-profit Black-led business organizations to run mentorship, financial planning, training, and networking — it does not pay businesses directly.

Questions people ask

Is the Black Entrepreneurship Loan Fund a grant?

No. It is a repayable loan, and that distinction decides how you plan for it. The fund is a $160 million investment, $30 million from the federal government and $130 million from the Business Development Bank of Canada, administered by FACE, and every dollar you borrow has to be paid back. Do not budget as though any part of it is free money, and do not confuse it with the program's other fund, a separate component that funds not-for-profit organizations rather than businesses.

How much can I borrow from the Black Entrepreneurship Loan Fund, and who actually lends it?

The fund lends from $25,000 to $250,000. FACE itself lends up to $100,000, and loans above that amount are risk-shared with the Business Development Bank of Canada (BDC). FACE is the initial entry point for every applicant: you apply through the FACE loan portal, FACE reviews the application, and the underwriting is shared with BDC. No interest rate is published on the official FAQ page, so confirm the rate and repayment terms with FACE before you sign anything. Do not carry a rate from another lender or another program into this one.

What does majority Black-owned mean, exactly?

The official FAQ states the test plainly: the applicant must self-identify as Black or Black-led, with majority ownership of more than 51% by Black Canadians. The applicant must also be a legal resident of Canada, a Canadian citizen or permanent resident, or a legal entity owned and controlled by a Canadian citizen or citizens. The applicant must be at least 18 years old. The business must be for-profit. Start-ups and existing for-profit small businesses in Canada qualify, including corporations, sole proprietors, and for-profit social enterprises. Not-for-profit organizations are not eligible for loans under the fund.

My business needs less than $25,000. Can I still apply to the Loan Fund?

Not under the Loan Fund's current terms. The fund previously ran a pilot microloan program for loans between $10,000 and $25,000 through FACE, Vancity, and Alterna Savings, but that pilot concluded on March 31, 2025 and has not been extended, while loan applications for amounts of $25,000 and above continue to be accepted and processed. If you need less than $25,000, do not plan around the old microloan terms, since they are gone. Look instead at Futurpreneur's Black Entrepreneur Startup Program if you are 18 to 39, or at the mainstream small-business loan routes in the related guides below.

I am 18 to 39. Should I apply to FACE or to Futurpreneur?

They are different doors for different stages, and you can consider both. Futurpreneur's Black Entrepreneur Startup Program (BESP) is for founders aged 18 to 39 who self-identify as Black, are Canadian citizens or permanent residents, and whose business is not yet operational or has been operating full time for 24 months or less. It offers a flexible, equity-free loan of up to $75,000, including BDC co-financing, plus up to two years of mentorship, and it is a loan, not a grant. The FACE Loan Fund covers larger amounts, from $25,000 to $250,000, with no upper age limit. If you are starting out and under 40, Futurpreneur is the smaller, earlier-stage route; if you need more than $75,000 or are over 39, the FACE Loan Fund is the route.

Can the Ecosystem Fund pay my business directly?

No. That fund is a component of the Black Entrepreneurship Program. It supports not-for-profit Black-led business organizations so they can run mentorship, financial planning, business training, and networking for Black entrepreneurs. It pays those organizations to run services, not your business. That still helps you: the organizations it funds are the ones that can help you write the business plan, prepare the financial statements, and get ready to apply to the Loan Fund. If someone offers you a grant from that fund for your business, they are describing a different program, so check what they actually mean before you hand over any information.

Keep going

Sources

  • Innovation, Science and Economic Development Canada, "Frequently asked questions — Black Entrepreneurship Loan Fund" — the $160 million fund ($30 million from the Government of Canada, $130 million from BDC), loans up to $250,000, FACE providing loans up to $100,000 with larger loans risk-shared with BDC, the microloan pilot concluding March 31, 2025 with $25,000-and-above applications still accepted, FACE as administrator and initial entry point, the FACE loan portal as the application route, applications accepted since May 31, 2021, the eligibility test (more than 51% Black-owned, legal resident, minimum 18), for-profit eligibility and not-for-profit exclusion, the business plan, registration and financial statements requirement, eligible and ineligible uses of funds, shared FACE–BDC processing, variable turnaround times, and referral on non-approval —
  • Government of Canada, "Government of Canada announces support for Black entrepreneurs and businesses in British Columbia" — the BEP renewal of up to $189 million over five years, 2025–2030, including up to $105.4 million for the Ecosystem Fund, up to $7.5 million for the Knowledge Hub, and up to $67 million for the Loan Fund; the Ecosystem Fund enabling Black-led not-for-profit organizations to provide incubator and accelerator programs, mentorship, financial planning, and business development support; and the program totals of more than 24,000 businesses supported and more than 800 loans totalling $70.6 million —
  • Futurpreneur, "Black entrepreneur startup program" — the flexible, equity-free loan of up to $75,000 including BDC financing, up to two years of free mentoring, the eligibility test (self-identify as Black, Canadian citizen or permanent resident aged 18–39, business not yet operational or operating full time for 24 months or less), the $25,000 Futurpreneur / $50,000 BDC split, the Futurpreneur repayment terms (RBC prime plus 3%, interest-only first year, 1% loan management fee), and the statement that Futurpreneur offers collateral-free loans, not grants, to Black entrepreneurs —
  • Innovation, Science and Economic Development Canada, "Black Entrepreneurship Program" — the program's three components and the Ecosystem Fund supporting not-for-profit Black-led business organizations that provide mentorship, financial planning, business training, and networking —

No interest rate for the Black Entrepreneurship Loan Fund is stated in this guide, because none is published on the official ISED FAQ page: confirm the rate and repayment terms with FACE before you sign anything. No processing or turnaround time for a Loan Fund application is stated, because the FAQ says timelines vary by individual circumstance: ask your FACE client relationship manager for the current timeline when you apply. No start-up-versus-existing-business loan cap split is stated — the claim in some third-party guides that start-ups can borrow up to $50,000 and existing businesses up to $250,000 does not appear on the official FAQ page, so it is not repeated here; the only cap the FAQ states is $250,000 overall, with FACE providing up to $100,000. No repayment term length (such as seven years) is stated, because no term is published on the official FAQ page. No microloan amount below $25,000 is stated as currently available, because the pilot ended March 31, 2025 and was not extended. Re-check the ISED FAQ and the FACE portal on the day you apply: they govern over any summary, including this guide.

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