Joint Loan Program Eligibility Criteria: Community Microfinance and BDC

Eligible Groups

• Black entrepreneurs – Applicants must self-identify as being of African or Caribbean heritage and must have at least 51% ownership interest in the business
• Social (for profit) entrepreneurs – engaged in a business that uses a creative and innovative approach to solve economic, social and environmental issues.
• Women entrepreneurs – must have at least 51% ownership interest in the business

Alterna Community Microfinance Loan Terms and Rates

• Between $5,000-$25,000
• 5-year repayment period
• Open to Ontario residents
• Interest rate ranges from Prime +2% to Prime + 6%
• $100 application processing fee (payable upon loan disbursement)
• Business must be revenue generating for at least 12 months before application
• Personal income of $50,000 or less
• Sole proprietorship, partnership or incorporated business
• Applications are subject to credit approvals and eligibility criteria. Some restrictions may apply

BDC Loan Terms and Rates

• Applicants must be approved for a loan through the Alterna Community Microfinance program
• Between $5,000-$25,000 – the loan amount will be equal to the loan from Alterna
• 5-year repayment period (interest-only repayment in the first year) $50 application processing fee (deducted from the initial loan disbursement)
• Interest rate: BDC Floating Base Rate + 1.65%
• Loan applicants must not be BDC borrowers at the time of application
• Applications are subject to BDC approval and eligibility criteria. Some restrictions may apply