The federal government is putting another $189 million toward the Black Entrepreneurship Program (BEP), extending funding for loans, business support and research aimed at supporting Black-owned companies.

The BEP launched in 2021 with an initial $265 million from the federal government. The renewed funding will be rolled out over five years with $67 million in loan funding, $105.4 million for regional development agencies and $7.5 million to a knowledge hub led by Carleton University’s Sprott School of Business and the Dream Legacy Foundation.

According to the federal government, the program has supported more than 24,000 Black entrepreneurs in Canada through training, mentorship and networking since its launch.

Its loan fund, administered by the Federation of African Canadian Economics and the Business Development Bank of Canada (BDC), has approved 801 loans worth $70.6 million. The fund is capitalized by $33 million from the federal government, $130 million from BDC and $128 million from Canada’s major banks and credit unions, for a total pool of about $291 million.

The new funding comes as Black entrepreneurs continue to report disproportionate barriers to financing. Surveys conducted through the Black Entrepreneurship Knowledge Hub found that nearly half of respondents (46.8 per cent) cited the unavailability or high cost of loans and credit as a major challenge. 

Difficulty accessing capital also contributes to a higher rate of self-financing among Black business owners, at 80 per cent compared to about 69 per cent of the broader small-business population, according to the survey. A Toronto Metropolitan University report noted that Black entrepreneurs often face higher loan rejection rates and less favourable lending terms than white counterparts. 

The federal government framed the renewed BEP not just as an economic initiative, but also as part of its broader strategy to address anti-Black racism. Rechie Valdez, Minister of Women and Gender Equality and Secretary of State of Small Business and Tourism, said access to capital, mentorship and reliable data will help entrepreneurs turn ideas into jobs and successful businesses in their communities.