Joint Loan Program


                      



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

FAQ's

What is the difference between the joint loan program with BDC and the Black Entrepreneurship Loan Fund launched by the Government of Canada? Expand/Collapse

Alterna is proud to participate in the microloan program of the Black Entrepreneurship Loan Fund, which offers loans between $10,000-$25,000.  This new collaboration with BDC will allow eligible loan recipients of Alterna microloans to apply for extended funding through BDC.

How do I determine if I am eligible for the joint loan program with BDC? Expand/Collapse

You must satisfy the eligibility requirements for the Alterna Savings and Credit Union Microfinance Program. Once approved for a loan with Alterna’s Microfinance program, your application will be submitted to BDC by Alterna Savings.

If your business, any of the owners, or affiliates are already a BDC client, you are not eligible for this program.

Do I have to make payments to Alterna and BDC at the same time? Expand/Collapse

Clients will have two distinct loans, one from Alterna and one from BDC. Loans funded by BDC, once approved, will be disbursed directly to recipients. The loan recipients will be required to repay both loans concurrently.

* Loans from Alterna Savings and BDC may be up to $25,000 each.  This amount will be determined on a case by case basis and is not guaranteed.