New Loans For Black Business Owners – Economic Relief From COVID-19

New loans for black business owners was announced by Prime Minister Trudeau yesterday. The purpose of the loan program is to help black business owners and entrepreneurs by providing economic relief during COVID-19. The goal is to help these ones recovery and grow their businesses, and provide an economic boost. The government also feels that this is way to help curve systemic racism. So what are some of the details of the new program?

New Loans for Black Businesser Owners – Highlights

The $221-million program will receive about $93 million from the federal government over the next four years. It will receive $128 million from eight financial institutions. Here ‘s the actual breakdown from the Prime Minister’s website below:

The program will include:

-Up to $53 million to develop and implement a new National Ecosystem Fund. This will support Black led business organizations across the country. It will help Black business owners and entrepreneurs access funding and capital, mentorship, financial planning services, and business training.

-Up to $33.3 million in support through the new Black Entrepreneurship Loan Fund that will provide loans of between $25,000 and $250,000 for Black business owners and entrepreneurs. The Government of Canada is also partnering with financial institutions, including RBC, BMO Financial Group, Scotiabank, CIBC, National Bank, TD, Vancity, and Alterna Savings, to make up to $128 million available in additional lending support.

-Up to $6.5 million to create and sustain a new Black Entrepreneurship Knowledge Hub. This Hub will collect data on the state of Black entrepreneurship in Canada and help identify Black entrepreneurs’ barriers to success as well as opportunities for growth. The Hub will be run by Black-led community and business organizations, in partnership with educational institutions.

When Will This Program be Implemented?

The Prime Minister did not announce when the new loan program for black business owners will be implemented. Also, there were no details about how one would specifically apply. And there were no details on the criteria needed to qualify for the loan. And there were no details about the interest rate, repayment etc. So we will have to wait for further announcements to get more clarification. But don’t worry, as soon as we have more details to share – share it we will!

In conclusion, for many black business owners struggling from the impact of the coronavirus, it is a nice announcement to think of additional funding options. However, they will need more details and action to benefit from this program. So we’ll wait and see for now, and update you as soon as we have more information. Stay safe everyone.

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