Under a new financial program jointly funded by the Canadian federal government partnered with eight financial institutions, the country’s Black entrepreneurs will be given encouragement and cash support to start or expand a business.
Details of the Program: The details of the new program were announced on Wednesday by Prime Minister Justin Trudeau. The $221 million initiative was unveiled at an event in Toronto. The innovative program is a result of a series of requests made by the Parliamentary Black Caucus last June. The original open letter was signed by over 100 members of parliament and senators. This is the first federally funded program of its kind designed to support specific Black businesses.
Reasons for Launch of the Program: According to the statement by Trudeau, the program was launched in response to the inequities that were exposed as a result of the ongoing COVID-19 global pandemic. The health crisis has highlighted the systemic gaps and economic problems that face Black Canadians. Trudeau said that he wants the government to be able to provide a recovery that is inclusive and equitable for everyone, regardless of race or socioeconomic status.
Trudeau went on to say that this investment in Black Canadians is an investment in all economic empowerment as well as being an essential piece of achieving justice for everyone. In his speech, he acknowledged that the past system has locked out too many Black business leaders by denying them the same opportunities afforded by other Canadians.
Breakdown of Funding: The federal government in Ottawa is fronting $93 million of the costs spread out over the next four years. This money will include $33 million earmarked for loans, $6.5 million set aside to collect data on the barriers that face Black Canadians in the business industry, and an additional $53 million for mentorship and training opportunities within Black-owned and operated business organizations.
In addition to the federal funds, banks are giving up to $128 million to provide loans in varying amounts for Black business owners needing extra financial assistance.
Response from Community: The announcement was symbolically made at an organization called HXOUSE, located in Toronto. The organization bills itself as a think center dedicated to fostering innovation and providing opportunities for the youth of Toronto. HXOUSE co-founder Ahmed Ismail praised the new program for its acknowledgment of systemic racism and for taking the uncomfortable steps to address the growing issue.
