From supporting innovation to creating economic expansion, this loan-funding organization has proven its importance to Black Canadian entrepreneurs from coast-to-coast.
The Federation of African Canadian Economics (FACE) has made outstanding milestones in empowering and growing Black businesses throughout the country, and its annual report numbers show exactly that. In the 2023-24 fiscal year alone, FACE approved $15.7 million in loans, reinforcing its commitment to financial inclusion and supporting Black-owned businesses.
During the 2023-24 fiscal year, it successfully disbursed $12.9 million across 152 loans to Black entrepreneurs through the Black Entrepreneurship Loan Fund (BELF), despite a tough year for Canada economically.
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Last year marked a period of significant economic turbulence for the country, characterized by a tight monetary policy environment. In July, of the same year, the Bank of Canada raised its key interest rate to five per cent, marking the first time the rate had hit such a number since April 2001. The aggressive rate hike had repercussions on many Canadians, affecting household incomes, debt, and limited business investment spending. FACE also notes that consumer consumption, which accounts for 55 per cent of the country’s Gross Domestic Product (GDP), was sluggish during the year.
Due to deep-seated socio-economic inequalities, Black communities are often affected and faced with barriers by these kinds of changes, underscoring the urgent need for targeted interventions and support.
WHY FACE’S FUNDING IS IMPORTANT IN GROWING CANADA’S BLACK BUSINESS COMMUNITY
Since its inception in 2021 to the end of the 2023-24 fiscal year, FACE has approved $52.9 million in loans which has grown to over $60 million as of October 2024, showcasing its mission to create Black generational wealth and foster economic growth in Canada.
Born out of a need to address the historical challenges Black entrepreneurs have faced when seeking to access capital, FACE in partnership with the government of Canada, established the BELF, a component of the Black Entrepreneurship Program. The Canadian government invested $160 million into BELF.
One year prior to the creation of the loan service, Prime Minister Justin Trudeau recognized the value in the contributions made by Black Canadian entrepreneurs and noted that their success is essential to Canada’s economic recovery and future prosperity amid the COVID-19 pandemic.
In 2020, there were nearly 145,000 Black-owned businesses in Canada, representing 2.4 per cent of the total number of businesses in the country.
“[The pandemic] has highlighted and exacerbated existing systemic barriers faced by Black entrepreneurs and small and medium-sized business owners in Canada. While we have made progress in advancing equitable access to support and opportunities, much more needs to be done to better help Black business owners and entrepreneurs, and address anti-Black racism,” the prime minister said in a September 2020 statement.
Subsequently, Trudeau announced investments of up to nearly $221 million in partnership with Canadian financial institutions – including up to nearly $93 million from the Government of Canada over the next four years – to launch Canada’s first-ever Black Entrepreneurship Program. This program aimed to help thousands of Black business owners and entrepreneurs across the country recover from this crisis and grow their businesses.
More than four years later, FACE continues to do the work of helping business owners in the Black community access well-needed capital regardless of what point they might be on their journey, offering loans ranging from $10,000 to $250,000.
Canada’s population grew significantly in 2023, accounting for 3.2 per cent and reaching more than 40 million people by 2024. Driven mainly by immigration, FACE also extends support to newcomers, who make up a majority of Canada’s Black entrepreneurial community. By serving the diverse and specific needs of Black newcomers, a group that saw 46 per cent of loans disbursed between 2023 and 2024, the organization helps Canada maximize its investment to retain global talent.
The organization’s support for the Black community extends far beyond financial means. This year, FACE launched an innovative Black business listing map in partnership with Interac, a user-friendly platform for Canadians to discover, shop, and support more than 8,000 Black-owned businesses nationwide. More than just a directory, the tool quite literally puts Black businesses on the map, offering more visibility while being a testament to the vitality and diversity of Black entrepreneurship in the country.
In all, FACE works to ensure BELF-supported businesses prosper, which translates to more Canadian-made goods and services, driving innovation and more job opportunities in communities and neighbourhoods across the country. The organization aims to continue its goal of supporting businesses across all 13 provinces and territories in the nation, because when Black-owned businesses prosper, the rest of Canada does too.
“As FACE continues its mission, the organization looks forward to expanding its reach, fostering more partnerships, and strengthening its support for Black entrepreneurs. FACE remains dedicated to creating an inclusive economic landscape for Black Canadians, driving sustainable growth, and promoting long-term economic empowerment,” FACE CEO Tiffany Callender said in a statement.
For more information on FACE or to submit a loan application, click here.
