Decarbonization and tackling air pollution are taking center stage in Canada as the country works to meet its commitment to achieve net-zero emissions by 2050. To diversify this movement, the Federation of African Canadian Economics (FACE) manages the $160 million Black Entrepreneurship Loan Fund. Under the Macro Loan Program, eligible Black-owned businesses can apply for up to $250,000 for capital investments, including clean transportation vehicles and fueling and recharging equipment. Working capital loans and short-term receivables financing loans are also available.
FACE works with the Government of Canada, the Crown corporation’s Business Development Bank of Canada and financial institutions such as credit unions to provide these loans. This program is cross-sectoral, with public-private partnerships at the heart of FACE’s work.
Affordable financing for Black entrepreneurs in Canada couldn’t be more timely given the country’s clean transportation and energy revolution. The 2023 budget announced five major clean investment tax credits totaling more than $60 billion over the next decade. Energy Minister Jonathan Wilkinson announced Canada’s carbon management strategy at the International Energy Agency in Paris, France, in late September.
Complementing this range of financing and policy programs, FACE offers flexible loan terms to Black-owned businesses in Canada, allowing eligible businesses to defer principal payments for up to 12 months for a loan term of up to seven years. The program charges interest for up to 12 months, while fees, interest rates and terms depend on the borrower’s creditworthiness.
Clean transportation players looking to improve their value chain through inclusive supplier diversity initiatives can see this opportunity as a boon to their efforts. Michigan State University recently reported on the significant financial benefits to companies that invest in minority-owned businesses. Large Canadian companies can partner with Black-owned businesses to apply for this program.
Diverse and inclusive funding is essential as Black Canadians face significant barriers in the entrepreneurial ecosystem: According to the African Canadian Senate Group, 75% of Black entrepreneurs believe their race has made it more difficult to succeed as an entrepreneur. Statistics Canada reports that the average investment in white-owned businesses is more than three times that of black-owned businesses in terms of physical capital.
Stark racial disparities make FACE’s loan program an essential part of Canada’s clean energy innovation movement. Fairer lending will enable the best and brightest entrepreneurs to contribute to the country’s decarbonization goals.
Expanding access to capital with an inclusive approach is critical as the clean energy revolution unfolds in real time from coast to coast and country to country. Investment, technology and public policy tailwinds are accelerating Canada’s move toward sustainable energy and transportation. Canada clearly intends to fund new projects to combat climate change. Black-owned businesses focused on clean technology, sustainability and decarbonization should contact FACE’s support team.
Could your business, agency or organization use some help navigating the incentives, regulations and policies impacting your fleet as a result of these new policies?
GNA, North America’s leading clean transportation and energy consulting firm, is here to help. Contact us if you would like to develop a strategy around environmental justice and clean transportation. Here’s to a season of transformative, clean transportation – and human investment.