In March 2022, Former PM Justin Trudeau issued a statement on racial discrimination. He stated, “As part of the Government of Canada’s ongoing commitment to combat all forms of anti‑Black racism, we officially recognized the United Nation’s International Decade for People of African Descent (2015-24). We are also developing a whole‑of‑government action plan to eliminate systemic racism, address inequities in the criminal justice system, and improve the social, health, and economic well‑being of Black Canadians. In 2020, we launched Canada’s first-ever Black Entrepreneurship Program to support Black Canadian business owners and entrepreneurs as they grow their businesses. We also committed to developing a Black Canadians Justice Strategy, and last month, we dedicated up to $50 million to support Black-led organizations in building housing and providing more affordable rental housing for Black households in Canada.”
The Big 5 Separation
The immediate launch that felt like hope to some of a group that mostly gave up on being seen, was soon proved to be a letdown in the opinion of many. Sadly, many who made application just never heard back. Nonetheless, although sad, this is equally understandable. A reasonable mind can ascertain that a 13-person team, serving 30,000 applicants, creates a bottleneck of epic proportions. Fearing reputation risks, the Big 5 and other financial institutions, sought to distance themselves from the negative press, wanting not to be seen as a part of a problem, that only continued the idea of both ongoing systematic and systemic racial discrimination.
What was the result? Financial institutions decided it would be best, to develop their own versions of the Black Entrepreneur Fund. In doing so, they would have control, design and speed to actively deploy the money to qualified companies. What did they keep? Many banks kept in mind the fundamental reasons the Fund was created. Firstly, a company needed to be 51% black owned. Accordingly, a qualified person had the ability to partner with anyone of his or her choosing. This promotes what Canada is built on, diversity. Secondly, the barrier to entry was lower than standard lending qualification guidelines, like credit score for example.
CSBFL Comparison
How did this program compare to Canadian Small Business Financing Loan Program(CSBFL)? Well, they kept the borrowing limits of the initial fund. A company could borrow up to $250,000 for equipment and leaseholds, and $100,000 for working capital. Contrast that to the CSBFL, which allows up to $500,000 for equipment and leasehold financing. The CSBFL also offers $1,000,000 separately if purchasing real estate, plus an additional $150,000 for working capital, making it a superior program, available to all Canadians and Permanent Residents. Many black owned companies, whose owners qualified for the CSBFL, saw no need to seek less funds for their qualified business. They therefore opted to take the traditional routes.
Is The Program Here To Stay?
Does this mean that the model failed? By no means. The program works, even now, for what it was set out to do. Many banks still offer their version of the Black Entrepreneur Fund. Their aim is to support new and growing startups, allowing access to capital that was never made available. While it may not heal every wound of those Canadians with generations of stories of unfair treatment, denial of access to capital and redlining; it was certainly a bridge to begin to financially mend a broken relationship with those who lost faith in a system that previously rejected them on the basis of skin color.
Below is a list of Big 5 Bank-Specific Black Entrepreneurship Programs
BMO Black Entrepreneur Program:
RBC Black Entrepreneur Program:
Scotiabank Black-Led Business Financing Program:
TD Black Entrepreneur Credit Access Program:
CIBC Black Entrepreneur Program:
At MECA Capital Advisory, we help Black-owned businesses navigate both the traditional lending environment and programs like these to access the capital their businesses deserve. If you need help getting off the ground, get in touch with the MECA Team today.
MECA Capital Advisory offers Fractional Banking Office, where one of our experts will be integrated into your Finance Team to ensure you not only get bank-ready but stay bank-ready. Whether you need a bank-ready business plan, credible projections, or ongoing financial leadership through our Fractional Banking services, our role is simple: to ensure your business is not just prepared—but positioned for approval.
MECA Capital Advisory provides proactive, data-driven strategy that secures better terms and accelerates the funding process. Final price is assessed based on business complexity, industry sector, the current state of financial statements, and the specific scope of the engagement.
