🇨🇦 Grant Guide Canada

Black Entrepreneurship Program (BEP): Loans Up to $250,000

BEP Canada guide 2026: Up to $250,000 in loans for Black business owners. Black Entrepreneurship Loan Fund eligibility, application process, and regional partners.

Up to $250,000 (loan) 🇨🇦 Federal 📋 Near-Commercial Loan (Not a Grant) 📅 Updated Feb 2026

Quick Facts

ProgramBlack Entrepreneurship Program (BEP)
AmountUp to $250,000 (loan)
TypeNear-Commercial Loan (Not a Grant)
Administered byInnovation, Science and Economic Development Canada + BDC + Regional Black Business Organizations
DeadlineRolling — apply through regional partner organizations

Overview: Black Entrepreneurship Program (BEP): Loans Up to $250,000

The Black Entrepreneurship Program (BEP) is the Government of Canada's $265 million commitment to support Black business owners and entrepreneurs across Canada. The centerpiece is the Black Entrepreneurship Loan Fund (BELF) — near-commercial loans from $25,000 to $250,000 for Black business owners who have historically faced barriers to accessing capital through traditional lenders.

BEP is not a grant — it is a below-market loan (currently prime + 1.5%) delivered through a network of Black-led business organizations and BDC. The program also includes the Black Entrepreneurship Knowledge Hub (research and data collection) and the Black Entrepreneurship Ecosystem Fund (capacity-building for Black business organizations).

Beyond funding, BEP provides access to mentorship, training, networking, and advisory services through the regional delivery partners — organizations deeply embedded in Black business communities across Canada.

Eligibility Requirements

Your business must meet these criteria to qualify. Review each requirement carefully before applying.

IdentityBlack Canadian business owner(s) holding majority ownership and control
Business stageStart-up, early-stage, or established businesses — all stages served
IncorporationMost partners require incorporation; some serve sole proprietors
Loan purposeStartup costs, expansion, working capital, equipment, hiring
RevenuePre-revenue startups through established businesses can apply
GeographyAll provinces and territories; regional partners vary by location

What the Program Covers

✓ Working capitalDay-to-day operational expenses, inventory, accounts receivable
✓ Equipment and technologyBusiness equipment, machinery, technology tools
✓ Startup costsIncorporating, licensing, initial inventory, fit-out
✓ Expansion capitalOpening new locations, entering new markets, scaling
✓ HiringWages for key employees during growth phase
✓ Real property (limited)Some partners fund leasehold improvements

❌ Not Eligible

How to Apply: Step-by-Step

1
Find your regional BEP partner

Visit ised.canada.ca or search for Black business organizations in your province. Examples: Black Business Initiative (NS), Black Creek Community Health Centre (ON), BDC Black Entrepreneurship.

2
Pre-application consultation

Most partners offer free consultations to assess your business and funding needs before formal application.

3
Prepare business plan

A credible business plan with financial projections is required. Partners can help you develop one if needed.

4
Gather documentation

Personal ID, proof of Black identity (self-identification), business registration, financial statements, and funding request with specific use of funds.

5
Submit application

Apply directly to your regional BEP delivery partner.

6
Credit and business assessment

Partners assess your business viability, character, and capacity to repay. This is different from traditional bank credit scoring.

7
Loan committee review

Most partners have a loan committee that reviews applications. Decision typically in 4-8 weeks.

8
Disbursement and support

Approved loans are disbursed with ongoing mentorship and advisory support from the partner organization.

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Frequently Asked Questions (15 Questions Answered)

Is BEP a grant or a loan?

BEP is a loan — it must be repaid. However, it is a below-market, near-commercial loan with more flexible criteria than traditional banks. The interest rate is typically prime + 1.5%.

Who qualifies as a Black Canadian business owner?

BEP uses self-identification. You identify as Black (African, Afro-Caribbean, Afro-Latin American, and other Black identities). There is no documentation required beyond your self-identification.

Can I get a BEP loan if I've been turned down by a bank?

Yes — that is exactly the program's purpose. BEP partners use holistic underwriting that considers character, business potential, and community impact beyond traditional credit scoring.

Is there a credit score minimum for BEP?

Partners vary, but BEP is explicitly designed for borrowers who face systemic barriers including credit challenges. Many partners work with applicants with limited credit history.

Can a Black-owned business apply for other grants AND BEP?

Absolutely. BEP is specifically designed to be complementary. Combine with WES (if applicable), CDAP, Canada Job Grant, IRAP (if tech-based), and provincial programs.

Is BEP available across all of Canada?

Yes — delivery partners serve every province. Partner density is highest in Ontario, Quebec, BC, and Nova Scotia.

Can a Black-owned business with a non-Black partner apply?

Yes — majority Black ownership (51%+) and active management qualifies even with non-Black co-owners.

What is the loan repayment term?

Typical terms are 3-7 years depending on the use of funds. Equipment loans may have longer terms; working capital lines are typically shorter.

Can a startup with no revenue get BEP funding?

Yes — BEP partners serve startups. You will need a credible business plan and some evidence of market validation, but pre-revenue businesses are eligible.

Are there BEP-specific mentors and advisors?

Yes — all BEP delivery partners provide access to mentorship, coaching, peer networks, and advisory services beyond the financial product.

Is there a grant component to BEP?

The $265M government commitment includes the Ecosystem Fund, which funds Black business organizations' capacity-building. Individual businesses access loans, not grants, through BEP directly.

How long does BEP approval take?

Typical timeline is 4-8 weeks from complete application to decision. Complex cases or first-time business owners may take longer.

Can a Black woman entrepreneur use both BEP and WES?

Yes — this is an encouraged combination. BEP addresses capital access barriers; WES provides ecosystem support for women entrepreneurs. Many Black women have benefited from both.

What makes BEP different from a regular bank loan?

Holistic underwriting (character-based, not just credit score), cultural competency from Black-led organizations, access to peer networks and mentorship, and an explicit mandate to serve a historically underserved community.

Does BEP have a physical presence in major cities?

Yes — BEP partners operate community offices and host events in Toronto, Ottawa, Montreal, Halifax, Vancouver, Calgary, and other cities with significant Black business communities.

Common Mistakes That Get Applications Rejected

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Related Grant Programs

WES
Women entrepreneurship funding (stackable with BEP)
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$5K for new businesses
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Women Business Grants
Programs for women entrepreneurs