Funding of Black entrepreneurs’ program faces uncertain future following prorogue Parliament
Funding for two federal programs supporting Black entrepreneurs and community organizations is in limbo after Parliament was prorogued before it could approve new spending, leaving program providers uncertain about their future.
The government said in its fall economic statement in December that it would provide $189-million over five years to renew the Black Entrepreneurship Program and $36-million to continue the Support Black Canadian Communities Initiative, both of which are set to expire on March 31 at the end of the fiscal year.
But earlier this month, before any new funding could be voted on in the House of Commons, Prime Minister Justin Trudeau prorogued Parliament until March 24. Its return will be followed by a confidence vote, which is likely to trigger a federal election.
Tiffany Callender, chief executive officer of the Federation of African Canadian Economics, a non-profit that gives Black entrepreneurs up to $250,000 in loans to grow their businesses, said the situation is unprecedented for her group.
“I don’t think any of us can anticipate what is going to happen,” she said in an interview.
FACE, which was launched in 2021, administers the Black Entrepreneurship Loan Fund, a key component of the BEP. During the fiscal year ended March 31, 2024, it approved $15.7-million in loans and disbursed $12.9-million to Black entrepreneurs, according to its annual report.
Ms. Callender said it’s important the government doesn’t “underestimate” the value of its investment in Black communities. “When Black Canadian entrepreneurs win, Canada wins economically,” she said.
Montreal-based Groupe 3737 is one of the organizations that administers the SBCCI, which provides capital assistance and builds capacity in Black-led community groups.
CEO Louis-Edgar Jean-François said the non-profit has been actively engaging with decision makers and stakeholders to ensure the sustainability of the program. A petition launched in support of the BEP and SBCCI has garnered more than 3,100 signatures, according to the group.
The impact of SBCCI “has been transformational for not only the Black community but for Canada as a whole,” Mr. Jean-François said.
SBCCI has created more than 2,900 new jobs and supported more than 2,500 non-profit organizations across Canada since its inception in 2019.
Callie Franson, spokesperson for Small Business Minister Rechie Valdez, said in an e-mail that the government remains committed to funding Black entrepreneurs and ensuring that they have “the support they need to succeed.” But Ms. Franson didn’t specifically comment on the future of these programs.
When asked about the effect a possible change in government could have on these programs, Ms. Callender said the economic growth that Black entrepreneurs contribute to shouldn’t be overlooked.
“The work that is done to support Canadians is above party lines,” she said.
This article was first reported by The Globe and Mail
