Feds unveil $400 million investment in Black entrepreneurs and businesses

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The federal government is launching its first Black Entrepreneurship Program with $400 million to “address long-standing barriers” and support the long-term success of Black entrepreneurs and business owners.

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On Friday, a joint announcement from Minister of Middle Class Prosperity Mona Fortier, Nepean MP Chandra Arya and Hull-Aylmer MP Greg Fergus, chair of the Canadian Caucus of Black Parliamentarians, unveiled an investment of $832,000 for the Africa Development Network to develop and establish a new accelerator centre for Black Francophone entrepreneurs and businesses in Ottawa, Gatineau and Montreal.

The announcement was made on behalf of Mary Ng, Minister of Small Business, Export Promotion and International Trade.

The project is expected to support 400 entrepreneurs and 200 Black-led businesses, and is projected to create 150 new jobs through the companies that receive support.

The entrepreneurship program, once it is established, will provide one-on-one mentoring, coaching and matchmaking to Black entrepreneurs to connect them with Black industry advisors and provide custom training, officials said.

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Black-Canadian business owners and entrepreneurs make important contributions to the Canadian economy, yet they continue to face systemic racism and obstacles in starting and growing their businesses, government officials said, which has been further exacerbated by the COVID-19 crisis.

“For years racism and discrimination have kept Black business communities from reaching their true potential,” Fortier said. “This funding will help eliminate barriers to success for entrepreneurs in the National Capital Region by helping companies grow and creating more good local jobs.”

Ng said the investment to support the Africa Development Network “is an important step to support Black entrepreneurs and business owners” in the Ottawa-Gatineau region.

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The National Ecosystem Fund will support Black-led business organizations across the country, Ng said, “so that they can better access capital, and offer mentoring, financial planning services, and business training to entrepreneurs and business owners. This is just one part of our whole-of-government approach to taking action against anti-Black racism.”

The Black Entrepreneurship Program includes up to $53 million for the National Ecosystem Fund to support Black-led business organizations across Canada.An additional $51.7 million for the BEP was included in the 2021 federal budget.

The funding includes another $291.3 million through the Black Entrepreneurship Loan Fund, which will provide loans of up to $250,000 for Black business owners and entrepreneurs. Another $6.5 million will go to the Black Entrepreneurship Knowledge Hub, which will conduct qualitative and quantitative research and collect data on the state of Black entrepreneurship in Canada and help identify Black entrepreneurs’ barriers to success, and opportunities for growth.