Block's $5 million investment in Alterna Savings aims to enhance lending opportunities for Black-owned businesses in Canada, addressing significant barriers to accessing capital.

Information on the Target

Alterna Savings, Ontario's first member-owned cooperative financial institution, has long been dedicated to promoting economic inclusion. With a commitment to serving underserved communities, particularly Black entrepreneurs, Alterna has provided over $10 million in loans over the past two decades to individuals facing barriers to accessing capital. This investment from Block represents a strategic enhancement of Alterna's ability to make impactful financial contributions aimed at fostering entrepreneurship within historically marginalized groups.

Industry Overview in Canada

The financial services industry in Canada is characterized by a wide range of banking institutions, but unfortunately, access to capital remains challenging for many, especially for racialized and minority entrepreneurs. Research indicates that Black entrepreneurs in the country face significant financial discrimination, being denied loans by traditional banks eight times more often than their non-Black counterparts. This devastating statistic highlights the broader issues of socio-economic inequity prevalent in Canadian society.

In response to these challenges, community-focused financial institutions like Alterna Savings have emerged as vital players in promoting financial inclusion. These organizations often provide tailored support and flexible loan products that