Canada gives Black entrepreneurs funding for clean technologies

Decarbonization and tackling air pollution are a priority in Canada as the country works to address it. I’m in achieve net zero emissions by 2050. In an effort to diversify this movement, the Federation of African Canadian Economics (FACE) is administering the $160 million grant 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 charging equipment. Working capital loans and short-term financing are also available.

FACE works with the Government of Canada, the Crown Business Development Bank of Canada and financial institutions such as credit unions to provide these loans. This program is cross-sectoral and public-private partnerships are at the heart of FACE’s work.

Pro-funding for Black entrepreneurs in Canada couldn’t be more timely, given the clean energy and transportation revolution the country is experiencing. Budget 2023 announcement five major investment tax credits totaling more than $60 billion over the next decade. Energy Minister Jonathan Wilkinson announcement The Canadian Carbon Management Strategy, late September, presented by the International Energy Agency in Paris, France.

FACE adds to this tapestry of financing programs and policies and offers Black-led businesses in Canada flexible loan terms, allowing eligible entities up to 12 months of principal deferment with a loan term 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 score.

Clean transportation players looking to improve their value chain through inclusive diversity initiatives can see this opportunity as a boon to their efforts. Recently, Michigan State University reported on the great financial benefits for 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: 75% of Black entrepreneurs believe their race has made entrepreneurial success more elusive; HAS the African-Canadian Senate Caucus. Canadian Statistics relationship that the average investment in white-owned businesses is more than three times that of black-owned businesses in terms of physical capital.

The stark racial disparities make the FACE loan program important in Canada’s clean energy innovation movement. Fair lending will enable the best and brightest entrepreneurs to contribute to the country’s decarbonization goals.

Expanding access to capital through an inclusive approach is essential as the clean energy revolution unfolds in real time from coast to coast and country to country. Investments, technology and public policies are accelerating Canada’s transition to sustainable energy and transportation. Canada clearly intends to fund new initiatives to combat climate change. Black-led businesses focused on clean technology, sustainability and decarbonization should do so contact the FACE support team.

Could your company, agency, or organization use assistance managing the incentives, regulations, and policies applicable to your fleet due to 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 on environmental justice and clean transportation. Heading into a season full of transformative investments in clean transportation and people.

Chelsea Glisson

"Devoted reader. Thinker. Proud food specialist. Evil internet scholar. Bacon practitioner."

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