BMO commits $78 million to lending to Black-owned businesses

Bank of Montreal said it committed C$100 million ($78 million) to financing Black-owned businesses.

Black business owners and entrepreneurs can receive loans of as much as C$250,000 through the program, called “Business Within Reach: BMO for Black Entrepreneurs,” the Toronto-based lender said in a statement Monday. The bank also is partnering with the Black Opportunity Fund to provide education in areas including planning, financial management and marketing.

The program is aligned with an initiative Bank of Montreal started in 2019 to double its support for small businesses and female entrepreneurs. The bank also ties its top executives’ pay to meeting certain environmental, social and governance goals.

Bank of Montreal has set targets of increasing the proportion of Black employees in senior leadership roles to 3.5% in Canada and 7% in the U.S., and boosting Black and Latino interns and entry-level employees to 30% in the U.S. and ensuring 40% of its student opportunities in Canada are directed to youth who are Black, Indigenous or people of color.

“Black entrepreneurs face inequitable access to capital, which inhibits their ability to build and scale businesses,” said Stanley Julien, the bank’s head of special accounts management unit for Canada. “We believe this program’s funding and resources will enable Black business owners to expand operations and enhance the opportunity to participate in Canada’s economic growth.”