Business grants for black owned business and people of colour business 2025 - Canada
Starting, running, and scaling a business doesn't just require an idea or a solid strategy but also access to capital—a hurdle many find overwhelming. In general, over 20% of business owners and entrepreneurs reported difficulty in securing funding for their businesses.
When it comes to Black entrepreneurs and Black-led business organizations, according to a QuickBooks survey, 55% were denied a bank loan at least once when they started their businesses.
Also, 35% of Black business owners have reported that they need $10,000 to start a business, and over 44% of Black business owners weren't able to pay themselves. So, in this article, we are going to give you the list of grants for Black Canadian business owners and also loans that give priority to Black-owned businesses. However, the main priority of this article is grants that can help Black entrepreneurs without the fear of paying back. Let's dive into the grant programs that are accepting applications.
Black Business Consultancy Advisor Grant (CAS) Program - Atlantic Canada
This grant is for Black-owned businesses in Atlantic Canada to hire a consultant for the development of sales or marketing strategies, business management practices, technology or digital support, or e-commerce integration. They haven't specified any minimum or maximum cap on this grant, but it would be very helpful to hire a consultant to scale your business.
Prerequisites for applying for the grant:
Have a business that is at least one-third Black-owned.
Have been in operation for at least 6 months.
Can demonstrate the need for consulting support.
Applications are currently being accepted and will end on December 14, 2024. You can apply for the grant on the BBI website.
Black Opportunity Fund ( BOF ) - Black Entrepreneur Program
This is a grant program to encourage Black entrepreneurship by providing mentorship for over a year, along with financial support after the mentorship period.
Business Training Programs Offered by BOF
Financial Literacy Program – 90 days ( Financial Planning )
AVRO Business Accelerator Program (with Business Plan Writing stream) – 90 days
Propel Mastermind – 1 year
Elevate Mentor Protégé Program – 2 years
Female Founders in STEM Program – 90 days
Clean Tech and Sustainability Program – 6 months
After applying to the program, you will be assessed and directed toward the program that can best assist you. Upon successful completion of the program, each Black entrepreneur will be provided with a grant.
Also, the Black Opportunity Fund (BOF), through generous funding support from the CIBC Foundation, is currently offering reimbursement of up to $2,000 each calendar year to cover fees incurred to obtain licenses, permits, and certifications essential for business continuation and growth.
They are currently accepting applications, and no deadline is mentioned on their website. You can apply for this grant on the BOF website.
The above two are grant programs that are currently live and accepting applications. Now, let's dive into the programs that provide loans.
Black Entrepreneurship Loan fund
This program is a component of the Black Entrepreneurship Program (BEP) and is a partnership between the Government of Canada and FACE to encourage eligible black entrepreneurs by providing loans up to $250K.
Prerequisites for applying for the Loan Fund:
Detailed business plan
Up-to-date historical financial statements showing the Balance Sheet and Income Statement
Two to three-year financial projections
Up-to-date tax return for the business (T2 Income Tax Return) and business owner (T1 Income Tax Return) with Notice of Assessments
Personal Statement of Affairs
Government-issued Photo ID
Business Certificate of Incorporation/Registration
They have two programs: the Micro Loan Program and the Macro Loan Program. The Micro Loan Program provides loans between $10K and $25K, and the Macro Loan Program provides loans between $25K and $250K.
Afro-Entrepreneurs Fund ( Loans to Black Community businesses in Quebec )
This is a fund that supports Quebec's Black led businesses and provides one of the highest loans with a maximum cap of $500K. This is a great opportunity for Quebec's Black-led business organizations to scale and grow their business with the required capital.
Prerequisites for applying to this fund:
Are 18 years of age or older
Are a member of one of Quebec’s Black communities
Operate a business with growing revenue
Are an experienced manager
Demonstrate your company’s growth potential
Are an incorporated or registered for-profit business or a social economy business (non-profit organization or cooperative), carrying on a lawful business activity
Currently, they are accepting applications, and you can apply for the loan on the Afro Entrepreneurs website.
BDC Financing — Inclusive Entrepreneurship Loan
The Business Bank of Canada is offering a loan of up to $350K to support businesses owned and led by persons from underserved communities, including women, Indigenous, and Canadian Black entrepreneurs. This loan can be used for launching growth projects, purchasing new or used equipment, and investing in technology.
Prerequisites for Applying to the Loan Fund:
Have a business that is at least 51% owned and led by persons from an underserved community, including women, Indigenous, and Black entrepreneurs.
Have an annual revenue of less than 3 million dollars.
Have a business established and registered in Canada.
The fund is accepting applications, and you can apply for the loan by filling out an application with a BDC specialist.
Evol — Conventional loan (Aquisition and Growth Fund )
This is a Fund by Evol to support the growth of existing businesses in Quebec and should be owned by under-represented communities (women, racialized people, immigrants, First Nations, Inuit, LGBTQ2+ community and people with disabilities).
They are providing loans up to $450K and a minimum of $20K.
Prerequisites for Applying to the Loan Fund:
Are from a community that is under-represented in entrepreneurship (women, racialized people, immigrants, First Nations, Inuit, LGBTQ2+ community and people with disabilities)
Own at least 25% of the shares and votes
Hold a strategic position within the business
Are able to demonstrate that the business has adopted or is committed to adopting sustainable development practises based on the 17 UN goals.
You must provide financial statements projected over 2 years.
You need to provide financial reports for the last 3 years (if possible).
You must provide the latest interim statements.
The fund is actively accepting applications and you can apply for it on EVOL website.
Evol — Conventional Startup loan
This is a Fund by Evol to support startups that are less than 2 years old and also the businesses that are starting up and are owned by under-represented communities (women, racialized people, immigrants, First Nations, Inuit, LGBTQ2+ community and people with disabilities) in Quebec . They do a maximum loan of $75,000 and a minimum of $20,000.
Prerequisites for Applying to the Loan Fund:
Requires a minimum down payment of 5% of the project value
Are from a community that is under-represented in entrepreneurship (women, racialized people, immigrants, First Nations, Inuit, LGBTQ2+ community and people with disabilities)
Own at least 25% of the shares and votes
Hold a strategic position within the company
Are able to demonstrate that the business has adopted or is committed to adopting sustainable development practises based on the 17 UN goals
Provide financial statements projected over 2 years.
Provide shareholders CVs.
EDC Inclusive Trade Investments Program (ITIP)
To support export businesses owned or led by people identifying as women, Indigenous, Black, and other dimensions of diversity, EDC has committed to invest $200 million. They don't have a maximum or minimum cap on the investment, and they participate as an investor, not as a lender. They can come in as investors in one of the funding rounds and invest on market terms by taking some equity.
Prerequisites for applying to the investment:
Canadian company owned and/or strategically led at the C-suite level by diverse person(s) (who identify as women, Indigenous, Black, or other racialized peoples, LGBTQ2+, or people living with disabilities)
Diverse members of the C-suite have equity ownership that is consistent with other C-suite members
Commercial revenue growth is accelerating towards C$500,000, with significant export growth potential
Company that demonstrates commitment to establishing a diverse board of directors.
They are actively accepting applications, and you can visit the EDC website to apply.
Conclusion
Grants should be the first priority for entrepreneurs as they are non-repayable funds that provide vital support during the crucial initial stages of business development, without the fear of repayment. Every entrepreneur should actively seek out and apply for grants offered by the Government of Canada and private organizations. Applying for grants not only alleviates financial burdens but also opens up opportunities for networking, mentorship, and further investment. By taking full advantage of available grant programs, entrepreneurs can secure essential funding while focusing on growing their businesses and making meaningful impacts in their industries. Don't miss the opportunity to propel your business forward with the support of these invaluable resources.
