The bank has announced a collaboration with Futurpreneur to offer small business loans to Black-owned start-ups
The financial services industry has not escaped scrutiny around racial inequality highlighted by the Black Lives Matter movement.
Last summer, RBC committed to backing Black entrepreneurs with $100 million over the next five years and this week it has announced a key collaboration as part of that promise.
The bank is working with Futurpreneur to offer small business loans for young Black Canadian entrepreneurs to help them start their businesses though The Black Entrepreneur Startup Program.
The program will provide up to $40 million in funding over the next five years and those aged 18-39 will be eligible to apply. As well as cash, there will also be mentorship and other resources provided by Futurpreneur.
"The Financial Services industry plays an important role in enabling economic recovery and prosperity, and small businesses are the engine of that growth," said Neil McLaughlin, Group Head, Personal and Commercial Banking at RBC. "By providing access to capital, backed by dedicated advice and business services, the Black Entrepreneur Startup Program will help Black entrepreneurs finance, launch and manage their business ideas.”
Last year, WP heard from financial professionals of colour about their experiences in the wealth industry and how things can change to address racism.
Economic benefit
The aim is that the program will help young Black Canadians to realize their ambitions to own and grow a business and McLaughlin believes that this will have wider benefits for the Canadian economy.
“We believe this program is an important first step to making Black-owned businesses a meaningful part of Canada's economic growth and future prosperity,” he said.
Futurpreneur CEO Karen Greve Young says that the new collaboration will help drive inclusivity and diversity commitments.
"We recognize that young Black entrepreneurs disproportionally face barriers to success that have nothing to do with the potential of their business idea, notably access to financing and mentorship,” she said. “With RBC's meaningful funding contribution, this new program builds upon our proven, ongoing co-lending partnership with BDC to address barriers and amplify the success of hundreds of young Black entrepreneurs."
