Black entrepreneurship loans officially launching, says Trudeau

The Trudeau Liberals are commencing their loan program that will give out loans to black-owned businesses.

The Black Entrepreneurship Loan Fund, announced back in September of last year, will provide loans of up to $250,000 for black-owned businesses.

"The pandemic has shone a light on the inequalities that disproportionately hurt Black Canadians, and has underscored the need to restart our economy in a way that allows all Canadians an equal chance to succeed. That is why today – thanks in part to the leadership, advocacy, and expertise of Black business owners and Black-led organizations – we are announcing Canada’s first-ever Black Entrepreneurship Program," said Trudeau upon the fund's announcement. "As we move forward, this program will help support Black entrepreneurs and create new opportunities for Black-owned businesses, so they are well-positioned for our economic recovery."

Co-ops, social enterprises, and partnerships will also be given access to funding.

The funding will include investments of up to nearly $221 million in partnership with Canadian financial institutions—including up to nearly $93 million from the Government of Canada over the next four years—to launch the fund. The Federation of African Canadian Economics will be in charge of giving loans.

Chair of the Parliamentary black caucus Greg Fergus called it a "historic day," upon its announcement.

"Blacks weren't able to get deeds to the properties that they lived on, or the houses they owned. They weren't able to get loans so that they could pass on some prosperity to their children," said Fergus. "That they could use that capital in order to create businesses not only for their community, but for all Canadians, to create that prosperity... I think today, we can say that we've moved into a positive era."

Fergus called the announcement "a very positive development," saying it more work needed to be done in the fight against systemic discrimination.

The program itself has already been at the receiving end of some criticism, as the Trudeau Liberals had to inform some applicants that they were not black enough to receive the business loans.