- GNA Insight
Canada Empowers Black Entrepreneurs with Clean Tech Funding
October 13, 2023
Source: ACT News
Decarbonization and fighting air pollution are of central focus in Canada, as the nation works to meet its commitment to reach net-zero emissions by 2050. In an effort to diversify this movement, the Federation of African Canadian Economics (FACE) is administering the $160 million Black Entrepreneurship Loan Fund. Under the Macro Loan Program, eligible Black-owned businesses can seek up to $250,000 for capital investments, including clean transportation vehicles and refueling and recharging equipment. Working capital and short-term receivable financing loans are also available.
FACE is working with the Government of Canada, the Crown corporation Business Development Bank of Canada, and financial institutions like credit unions to deliver these loans. This program is cross-sectoral with public-private partnerships at the heart of FACE’s work.
Favorable funding for Black entrepreneurs in Canada could not be timelier given the nation’s clean transportation and energy revolution. Budget 2023 announced five key Clean Investment Tax Credits totaling more than $60 billion over the coming decade. Energy Minister Jonathan Wilkinson announced Canada’s Carbon Management Strategy at the end of September from the International Energy Agency in Paris, France.
FACE adds to this tapestry of funding and policy programs and offers Black-led businesses in Canada flexible loan terms, allowing eligible entities up to 12 months postponement of principal payments with a loan tenor of up to seven years. The program will charge interest for up to 12 months, while fees, rates, and terms are subject to the borrower’s credit rating.
Clean transportation stakeholders looking to enhance their value chain by way of inclusive diversity supplier initiatives can see this opportunity as a boon to their efforts. Michigan State University recently reported on the profound financial benefits for companies investing in minority-run businesses. Large Canadian businesses can work with Black-owned companies to apply for this program.