Prime Minister Justin Trudeau’s long-promised action to tackle systemic racism is starting to take shape with a new program that will deliver up to $221 million in public and private funding for Black-owned businesses and entrepreneurs.
The announcement Wednesday came almost three months after Trudeau vowed to take sweeping action “very soon” to address racism entrenched in Canadian police and other institutions. At the time, in mid-June, the Parliamentary Black Caucus in Ottawa — chaired by Liberal MP Greg Fergus — released a detailed call-to-action that was signed by more than 100 MPs in Trudeau’s caucus, including more than half his government’s cabinet.
That declaration included calls for increased supports to Black businesses, which Trudeau acknowledged Wednesday face “systemic barriers” that have been “exacerbated” by the COVID-19 pandemic.
“We need an economic recovery that’s inclusive and equitable for all Canadians,” Trudeau said, speaking at the Hxouse innovation “think-centre” for entrepreneurs on Toronto’s waterfront.
“An investment in Black excellence is an investment in economic empowerment, and economic empowerment is an essential part of justice.”
Billed as the Canadian government’s first “Black entrepreneurship program,” the initiative will involve $93 million from the federal government over four years. This will create an “ecosystem fund” to help Black entrepreneurs access training and capital to support their businesses, as well as a separate “hub” to collect and share data on Black businesses across the country, Trudeau said.
Financial institutions including RBC, BMO, Scotiabank, TD and CIBC will also contribute up to $128 million to a new fund that will lend out sums ranging from $25,000 to $250,000 to Black-owned businesses and entrepreneurs.
Trudeau said the program is needed because such institutions have a history of failing to support Black businesses, and that his government hopes the private sector will carry on lending more money after this program expires.
“It would be lovely to imagine that, with four years of working with almost all financial institutions on delivering capital, it will become very obvious to those institutions what we and so many of us in this room already know: that investing in Black businesses is an amazing way to create wealth and prosperity for everyone,” Trudeau said.
Chedwick Creightney, 56, is the owner and chief executive officer of VR Planet, a virtual-reality arcade and event organizer in Ajax. As a long-time entrepreneur who is Black, Creightney said he has experienced discrimination when trying to get loans for his businesses, to the point that he has teamed up with non-Black partners to ensure his applications are received more favourably.
“It’s exhausting,” he said, but added that it has been a welcome relief to feel more comfortable talking about his experience in the months since the global anti-racism movement began with the death of George Floyd in the United States, after a police officer was seen kneeling on his neck for almost nine minutes.
“We’re not asking for anything exceptional. We’re asking for equality,” said Creightney.
There is evidence that the COVID-19 crisis has hit Black and other minority groups hard. In late July, Toronto’s medical officer of health published data that showed Black people in the city were disproportionately infected with the coronavirus. In its “fiscal snapshot” this summer, the federal government also reported that women and racialized workers are being “most affected due to their significant representation in Canada’s health care, elder care, child care, personal support work, and essential service sectors.”
Earlier this year, the Black Business and Professional Association surveyed its members in Ontario and found that 80 per cent of them indicated they weren’t able to access the federal government’s wage subsidy program — which has since been expanded and made easier to qualify for — compared with 37 per cent in the broader private sector.
Fergus, the Black caucus chair who was on hand for Wednesday’s announcement, told reporters that Black people continued to face discrimination in the 186 years since slavery was abolished in colonial Canada. He cited examples of how Black Canadians were denied land deeds and faced hurdles accessing money that white Canadians never have.
And while Fergus welcomed the new program to support Black businesses, he also stressed how the government needs to go further in its effort to address racism in Canada, calling it “the beginning” of an effort to ensure Canadians are truly treated equally.
“It will not, in one fell swoop, eliminate all systemic discrimination and the consequences, but we’ve taken a positive step forward,” he said.
Multicultural Meanderings 