The FONDS AFRO-ENTREPRENEURS

Why a fund dedicated to Afro-Québec businesspeople?

According to a 2006 study (see the Task Force Report on the Full Participation of Black Communities in Québec Society), Afro-Québec entrepreneurs, especially those with a limited credit history or none at all, face significant hurdles, especially when it comes to access to funding.
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With a view to encouraging Black businesspeople in Québec to play an active role in economic life, the Government of Québec, in collaboration with Filaction and other partner organizations, devised the FONDS AFRO-ENTREPRENEURS specifically for entrepreneurs from Black communities.

Subsequently, the FONDS AFRO-ENTREPRENEURS, a non-profit organization, was instituted under an agreement between Filaction and the Québec Ministry of Economic Development, Innovation and Export Trade (MDEIE).

A flexible instrument

Amounts available

The FONDS AFRO-ENTREPRENEURS provides funding to start-ups and small businesses less than five years old in the form of a loan or loan guarantee in an amount ranging from $5,000 to $25,000. The investment by the FONDS AFRO-ENTREPRENEURS can, in some cases, be extended up to $75,000 through agreements with various financial partners.

Guarantees

In some cases guarantees may be required, depending on the nature of the project and the degree of risk. This can consist of, for example, guarantees linked to funded assets, if the latter have resale value.

Repayment

Loan recipients must repay the loan granted by FONDS AFRO-ENTREPRENEURS in periodic instalments, usually monthly. They must also consent to a regular follow-up process.

Flexible and adaptable to different needs

Special arrangements are possible when it comes to the term of the loan, the frequency and rate of repayment, and the terms and conditions of use, if the company’s needs justify it.

 

Copyright ® 2012 Tous droits réservés, Fonds afro-entrepreneurs.