FACE Annual Report 2023

CREATING WEALTH

20 23

ANNUAL REPORT

ONE ENTREPRENEUR AT A TIME

Contents

About FACE

About Face 3

FACE Coalition (FACE) is a national and bilingual, Black-led non-profit organization focused on providing resources and information to the Black community across Canada to accelerate wealth creation for Canadians of African descent.

Executive Summary 4 Message from the Chairman of the Board of Directors

5

Message from the CEO 8 2022/2023 Highlights 16

In partnership with the Government of Canada, FACE created a Black Entrepreneurship Loan Fund to help Black business owners with access to capital investments, working capital, or additional business resources for expansion. FACE has several other major partners that help further the mission of providing Black Canadians with the necessary resources, knowledge, and confidence to operate successfully as Black entrepreneurs and thrive as a community across the nation.

Operations Management 21 Governance 31 Performance Results 32

Our Vision

Partnerships 44

To be the catalyst for Black generational wealth creation.

Our Mission To drive generational wealth powered by sustainable economic resources, capacity, and strategic partnerships.

FACE Coalition 2022/2023 Annual Report

2

3

FACE Coalition 2022/2023 Annual Report

Executive Summary The FACE Coalition 2022/2023 annual report provides a comprehensive overview of the organization’s activities and achievements between April 1, 2022, and March 31, 2023. The report is divided into four sections, highlighting operations management, governance, performance results, and partnerships.

During the year in review, a national organizational structure is approved and implemented. Staff is being recruited, trained, and deployed nationwide, representing our federal mandate and reach. Internal Human Resources (HR) policies are being developed and approved to guide staff. The organization is continuing its public relations efforts, issuing press releases, informing, and educating black-own businesses on the Black Entrepreneurship Program (BEP) and the Black Entrepreneurship Loan Fund (BELF). The organization is actively participating in events to promote its mission and vision and cultivate relationships with stakeholders and potential clients.

The governance section emphasizes adopting a national governance structure by the Board of Directors, appointing, and training new Board members, instituting functioning Board committees and implementing a Board governance manual.

Performance results are showcasing the financial activities of FACE Coalition, including the number and value of approved and disbursed loans. The performance results highlight loan approval and disbursement by region, sector, and demographics. The report provides an overview of the loan application process and additional financial information related to loans and loan recipients.

Partnerships are playing a crucial role in FACE’s operations. The report highlights the partners enabling FACE to provide financial services and resources to Black entrepreneurs. Collaborations with organizations and institutions are instrumentals in supporting the mission of FACE. Overall, the report demonstrated FACE Coalition’s commitment to supporting Black entrepreneurs, providing financial services, and facilitating their professional success and wealth generation within the Black community.

The organization’s comprehensive approach, encompassing recruitment, marketing, simplified processes, and improved customer experience, contributes to its success. Focusing on governance, performance, and partnerships, FACE Coalition provides valuable financial resources and services to empower Black entrepreneurs.

FACE Coalition 2022/2023 Annual Report

4

20 23

Message from the Chairman of the Board of Directors It is with great pleasure and immense pride that I present the 2022/2023 annual report of the FACE Coalition. This year has been a transformative journey of innovation, growth, and progress as we have steadfastly pursued our mission to drive generational wealth powered by sustainable economic resources, capacity, and strategic partnerships.

Through our collective efforts, we have witnessed lives and businesses transformed, dreams realized and hopes restored.

At the core of our work lies the belief that resilient communities are the bedrock of progress and prosperity. We recognize that true empowerment comes from providing individuals and businesses with the tools, resources, and opportunities they need to thrive. Nurturing growth and progress is about addressing the present needs and building a sustainable future.

5

FACE Coalition 2022/2023 Annual Report

Our work, amplified through strategic partnerships with several major organizations that share our commitment to empowering Black Canadians, has played a pivotal role in advancing our mission, providing the necessary resources, knowledge, and confidence for Black entrepreneurs to not only operate successfully but also thrive as a community throughout the nation. By joining forces with these esteemed partners, we have expanded the scope and impact of our programs, ensuring that the Black community receives the support it deserves.

This year, we have witnessed remarkable progress in our collaborative efforts, and I am proud to share the impactful initiatives that have propelled our mission forward. The Black Entrepreneurship Loan Fund, established in partnership with the Government of Canada, provided crucial access to capital investments, working capital, and additional resources necessary for business expansion, unlocking new opportunities for growth and success within the Black community.

For two years, FACE Coalition has provided Black Canadian entrepreneurs with various services and financial resources to bridge the capital gap, helping them achieve their goals, grow their businesses, and spur innovation. Thanks to the remarkable mobilization and support from the Government of Canada, the Business Development Bank of Canada (BDC) and other financial institutions, FACE Coalition was able to help approve more than $22 million in loans, supporting entrepreneurs on the road to success, through the Black Entrepreneurship Loan Fund.

We all know that funding is always the biggest hurdle in business, especially for black entrepreneurs. Our development programs have focused on enhancing access to funding through quality education and opportunities for underserved populations. Investing in education has empowered countless individuals and businesses, equipping them with the knowledge and skills needed to break the cycle of poverty and create black generational wealth. FACE Coalition is now well-positioned to financially support black businesses and provide the resources to improve and increase their financial knowledge, thus ensuring sustainable entrepreneurial success.

This year, we have witnessed remarkable progress in our collaborative efforts, and I am proud to share the impactful initiatives that have propelled our mission forward.

Callender, who has worked tirelessly since the inception of FACE to ensure that our services and resources meet the needs of our clients and to make us a leader in supporting the entrepreneurship of African Canadians and other cultural communities. I also express my deep gratitude to our Board of Directors, founding partners, the Government of Canada, corporate partners, and all community members. Because it is mainly thanks to you, Canadians of African origin, that this young adventure is a success.

As we reflect on the past year’s accomplishments, let us renew our commitment to our mission. Let us continue to work tirelessly, harnessing our collective strength, knowledge, and resources to build resilient communities that empower individuals to thrive. Together, we can create a world where every person can fulfill their potential and contribute meaningfully to society.

Thank you for your unwavering support and dedication. I am deeply honoured to serve as the FACE Coalition Board’s Chairman and be part of this incredible journey of transforming lives and businesses.

Louis-Edgar Jean-Francois Chairman, Board of Directors

As in our first year of existence, the demand for our financial services surpassed our expectations, but in anticipation of this demand, FACE Coalition hired and trained internal resources to meet the needs of our clients. We are delighted with this enthusiasm and are committed to providing services that meet the expectations we have raised.

None of these achievements would have been possible without the unwavering dedication and collaboration of our staff, board members, and partners. Your commitment to our shared vision to be a catalyst for black generational wealth creation has been instrumental in effecting tangible and sustainable change. Together, we have demonstrated the immense impact that collective action can have on transforming lives and shaping a brighter future.

I want to acknowledge the exemplary leadership of our CEO, Tiffany FACE Coalition 2022/2023 Annual Report

6

7

FACE Coalition 2022/2023 Annual Report

Economic Overview By the beginning of 2022, Canada’s economic output had surpassed pre-pandemic levels, signifying the resilience and determination of our nation. The unemployment rate reached record lows during this period, reflecting the strength of our labour market and the progress made in revitalizing economic activity. However, as the economy gained momentum, it also contributed to wage and price pressures, which led to headline consumer inflation exceeding 3%.

The impact of Russia’s war against Ukraine further compounded these inflationary pressures, particularly in global food and energy prices.

This geopolitical conflict had far-reaching implications for the global economy, fueling a surge in inflation that peaked at 8.1% in June 2022. The resulting increase in costs and prices profoundly impacted businesses and households, demanding careful management and strategic decision-making.

The Bank of Canada’s decision to tighten monetary policies reflects its commitment to maintaining a stable and sustainable economic environment. By adjusting interest rates and implementing other measures, the bank aims to balance supporting economic growth and mitigating the risks associated with inflationary pressures.

These tightening measures have been essential in tapering demand and addressing potential overheating in the economy. By carefully calibrating monetary policies, the Bank of Canada has sought to prevent excessive inflation that could erode the purchasing power of individuals and disrupt economic stability.

Our Response to the Economy

Message from the CEO At the end of the inaugural fiscal year in March 2022, we were determined to continue eliminating barriers hindering black businesses from thriving and providing the support needed to succeed as black entrepreneurs in Canada. I am happy to announce that we made remarkable progress in the 2022/2023 fiscal year, and I’ll share some of the achievements in this report.

FACE Coalition 2022/2023 Annual Report

8

Within this challenging environment, FACE Coalition supported Black entrepreneurs across Canada. We recognized the importance of adaptability and resilience in shifting economic dynamics. We designed programs and initiatives to empower our community, providing black entrepreneurs with the resources, knowledge, and capital necessary to navigate these uncertain times.

It is with great pride that I share the remarkable progress we have made in supporting Black Canadian entrepreneurs, as evidenced by the significant increase in performance.

9

FACE Coalition 2022/2023 Annual Report

Our Performance In the 2022/2023 fiscal year, we approved loans totalling $22,033,389 (twenty-two million, thirty-three thousand, three hundred and eightynine Canadian dollars), a notable increase compared to the $15,184,951 (fifteen million, one hundred and eighty-four thousand, nine hundred and fifty-one Canadian dollars) approved in the 2021/2022 fiscal year.

The increase in approved loans demonstrates the growing trust and confidence in our program and the increasing recognition of the value and potential within the Black entrepreneurial community.

Moreover, we disbursed a total of $17,236,912 (seventeen million, two hundred and thirty-six thousand, nine hundred and twelve Canadian dollars) in 2022/2023, compared to $8,138,081 (eight million, one hundred and thirty-eight thousand, eighty-one Canadian dollars) in the previous year, reinforcing our commitment to providing accessible capital and resources for the growth and expansion of Black-owned businesses.

In the 2022/2023 fiscal year, we approved loans totalling $22,033,389.

We are working assiduously to inform, educate and stimulate entrepreneurship in other areas across Canada with a bid to be a catalyst for generational black wealth creation across the country.

Sector-wise, the manufacturing sector (31-33) emerged as the top recipient of loans, followed by professional, scientific, and technical services (54), as well as the retail trade (44-45) and accommodation and food services (72) sectors. These sectors represent significant pillars of the Canadian economy, and our support to entrepreneurs within these fields contributes to sustainable growth, job creation, and economic diversification.

Since our initial fiscal year in 2021/2022, there has been an increase in the number of women (32%), newcomers to Canada (39%) and members of the LGBTQ2+ community (136%) accessing the Black Entrepreneurship Loan Fund (BELF).

The diversity in our loan books demonstrates our commitment to promoting economic empowerment and breaking down barriers historically hindering these groups from accessing capital and resources.

We are particularly thrilled to witness the regional impact of our initiatives. Western Canada (Alberta, British Columbia, Manitoba, and Saskatchewan), Quebec, and Ontario experienced substantial growth in approved loans, with increases from $2.4M to $4.2M (81%), $4.1M to $8.5M (107%), and $6.1M to $7.8M (27%), respectively, from our first year in operation. Furthermore, loan disbursements in these regions saw impressive growth rates from $0.9M to $2.5M (146%) in Western Canada, $2.4M to $7.4M (203%) in Quebec, and $3.3M to $5.7M (74%) in Ontario.

Supporting our community

The demand and success of our programs in these regions reflect the entrepreneurial spirit and determination of individuals across diverse sectors and industries.

With such a novel initiative, there were misconceptions about the vision of the organization and how to access the funding and resources available, so we embarked on a cross-country tour and a media campaign that resulted in over 10 million online media impressions, informing, and educating our community on the Black Entrepreneurship Program (BEP) and the Black Entrepreneurship Loan Fund.

We are opening our offices in Edmonton and Halifax to continue educating and informing the Black communities in Western and Atlantic Canada about the opportunities inherent in the Black Entrepreneurship Loan Fund with a bid to stimulate the entrepreneurship spirit in the region.

In terms of loan applications and approvals, Ontario led the way, closely followed by Quebec. These provinces have demonstrated an impressive appetite for entrepreneurship and have been the driving force behind the continued success of our programs. We are inspired by the passion and resilience of black entrepreneurs in these regions and will continue to support their aspirations for success.

FACE Coalition 2022/2023 Annual Report

10

As a Canadian non-profit organization whose mission is to amplify the economic well-being of Black entrepreneurs and the generational wealth of African Canadians, getting feedback from the community was essential to ensure we provide the support needed.

In the fiscal year under review, we set up a fully operational support center to respond to enquiries and guide clients through the application process. During this period, the support center managed 11,106 inbound and outbound calls in French and English, supporting clients through their applications and educating the community on the BEP. 41% of the inbound calls were from clients enquiring about their loan applications, while 4% enquired about the BEP. The support center made 5,895 outbound calls to our community, with about 43% of those calls reviewing our clients’ loan applications and guiding them through to a successful application.

11

FACE Coalition 2022/2023 Annual Report

Increasing the number of successful loan applications is pivotal in ensuring FACE Coalition fulfills its vision to be a catalyst for black generational wealth creation. In the 2022/2023 fiscal year, we partnered with TD Canada Trust Bank to create a ‘Propelling Black Entrepreneurship Program.’ This program will offer 50 grants to support black entrepreneurs across Canada to access support from professional service providers to prepare their business and financial documents, including business plans, financial statements, and tax filing.

We believe this program will increase the financial knowledge within our community and make black entrepreneurs more successful in their loan applications.

The Future As we move forward, we must continue to monitor and respond effectively to changes in the economic landscape. Our commitment to empowering Black entrepreneurs remains unwavering, and we will remain agile in adapting our programs to meet the evolving needs of our clients and the broader black business community.

By fostering innovation, promoting diversity and inclusion, and providing access to capital, we will contribute to the sustainable growth and success of Black-owned businesses in Canada.

FACE Coalition is also partnering with the Toronto Metropolitan University’s Diversity Institute to research Black founders’ challenges when pursuing commercial financing with traditional financial institutions and their experience with FACE Coalition in successfully obtaining their first commercial loan. I am excited at the insight these research initiatives will bring to the fore and the subsequent innovations FACE Coalition, its partners and the black Canadian community will offer to meet the needs of our community.

Our research initiatives will complement the studies commissioned by the Black Entrepreneurship Knowledge Hub (BEKH) and enhance the overall understanding of the Black Entrepreneurship ecosystem in Canada.

I want to express my deep appreciation to our dedicated team, supportive partners, and tireless board members who have contributed to the success of the FACE Coalition. Together, we are making a profound difference in the lives of Black entrepreneurs and the broader Canadian economy. As we move forward, we will continue to evolve, innovate, and strive for excellence in our programs, ensuring we remain at the forefront of empowering Canadian entrepreneurs to achieve their fullest potential.

Tiffany Callender Chief Executive Officer

The FACE mandate is national; black entrepreneurs are present across Canada. To monitor and respond effectively, we are opening our offices in Ontario, Quebec, Nova Scotia, and Alberta, equipped with resources to engage with entrepreneurs in these areas, provide support and answer enquiries in person.

Serving our community and creating generational wealth requires indepth knowledge and understanding of the root causes of inhibiting inherent challenges. Understanding these challenges will ensure solutions are tailor-made, efficiently meeting the needs of Black entrepreneurs in Canada.

FACE Coalition, in the 2022/2023 fiscal year, partnered with Dunn, Pierre, Barnett & Company Canada Ltd, a Black-owned and operated management consulting firm, to investigate the low investment-topopulation percentage of black Quebecers and the factors limiting investments by Black Quebecers titled, Black Quebecers Pension Survey (BQPS). The survey report will be published in the 2023/2024 fiscal year. It will give insights into limiting factors to investment by Canadians of African descent with a bid to proffering solutions for generational wealth creation.

FACE Coalition 2022/2023 Annual Report

12

13

FACE Coalition 2022/2023 Annual Report

The Team

FACE Coalition 2022/2023 Annual Report

14

15

FACE Coalition 2022/2023 Annual Report

Highlights 2022/2023

+112 % $

CAD

8.1 M

$

CAD

Disbursed 2021-2022

$

CAD

17.2 M

Disbursed 2022-2023

17.2 M

180 LOANS

Alberta

$

$

CAD

CAD

25.4 M

1.9 M

Quebec

25 LOANS

$

British Colombia

$

Total disbursed 2021-2023

CAD

0.5 M

CAD

7.4 M

53 LOANS

7 LOANS

New Brunswick

$

CAD

0.5 M

8 LOANS

Ontario

$

CAD

5.7 M

Nova Scotia

$

CAD

74 LOANS

FACE Coalition 2022/2023 Annual Report

16

0.9 M

9 LOANS

17

FACE Coalition 2022/2023 Annual Report

CAD

$

FACE Coalition 2022/2023 Annual Report

Total disbursed 2021-2023

25.4 M

18

CAD

$

Amount FACE Approved Mar ’23

Feb ’23

11

21 23 41 52

51

54 55

Total approved 2021-2023

37.2 M

19 61

71 72

91

Manufacturing Retail trade

Public administration

Other services (except public administration)

Accommodation and food services

62

Arts, entertainment and recreation

Health care and social assistance

Educational services

Administrative and support, waste management and remediation services

Management of companies and enterprises

53

Professional, scientific and technical services

22

Real estate and rental and leasing

Finance and insurance

Information and cultural industries

Wholesale trade

31

32

45

33

44

Transportation and warehousing

1 000 000

Construction

2 000 000

Mining, quarrying, and oil and gas extraction

4 000 000

Utilities

5 000 000

Agriculture, forestry, fishing and hunting

Amount Disbursed Jan ’23

Dec ’22

Nov ’22

Oct ’22

Sept ’22

Aug ’22

Jul ’22

Jun ’22

May ’22

Apr ’22

Mar ’22

Feb ’22

Jan ’22

Dec ’21

Nov ’21

Oct ’21

Sep ’21

Aug ’21

Jul ’21

Approved vs Disbursed Loans Loans by Sector 4000000 3500000

3000000

3 000 000 2500000

2000000 1500000

1000000 500000

48 49

81

56

Amount Disbursed 2022/2023

Amount Disbursed 2021/2022

FACE Coalition 2022/2023 Annual Report

Loans by Gender 30 000 000 25 000 000 20 000 000 15 000 000 10 000 000

Mar '23

Feb '23

Jan '23

Dec '22

Nov '22

Oct '22

Sep '22

Aug '22

Jul '22

Jun '22

May '22

0

Apr '22

5 000 000

Operations Management

Non-Binary Female Male

FACE Coalition administers the Black Entrepreneurship Loan Fund, a component of the Black Entrepreneurship Program set up in partnership with the Government of Canada and the Business Development Bank of Canada (its financial partner) to accelerate wealth creation for Canadians of African descent.

As a federally funded non-profit organization, it is pertinent that the organization extends its reach and opportunities to every Canadian of African descent across the country. This mandate made it necessary to deploy a regional organizational structure, ensuring we had a presence in the different parts of the country.

In the first year of operation, FACE Coalition operated a lean structure.

Still, as the demand for the BELF grew, the organization adjusted to the market and provided the internal resource required to process loan requests and the need for continuous awareness, education, and support.

FACE Coalition 2022/2023 Annual Report

20

21

FACE Coalition 2022/2023 Annual Report

Staffing FACE Coalition grew its workforce by 51% in the year under review to speed up application processing, support clients, and chart a strategic direction for implementing the organization’s mission. The growth in the workforce was also to expand our reach and engagement across Canada. 38% of the new hires were for Ontario, 38% in Quebec, while New Brunswick and Alberta had 14% and 10%, respectively.

Since the last annual report, FACE Coalition appointed a Chief Operations Officer (COO) to oversee the organization’s operations and strategic planning. The organization also hired a Director of Capital Funding and Head of Accounting, a Senior Manager of Operations and three other Managers to support FACE Coalition’s growth strategy.

As the organization grows, the HR department creates training programs for staff to enhance their knowledge of best practices. Human Resources (HR) policies were also made, published, and communicated to staff to inform and guide employee behaviours.

Marketing and Communication Marketing and communication remain integral to FACE Coalition’s overall objective of increasing access to capital for Black entrepreneurs.

Increasing access to capital includes effective information dissemination about the loan application process, eligibility criteria and resources available within the ecosystem of the Black Entrepreneurship Program. FACE Coalition deployed some marketing and communication initiatives to increase awareness about the BELF and information on eligibility criteria and the loan application process.

+ 51 %

Outreach and Engagement During the fiscal year, FACE Coalition engaged in several outreach initiatives to ensure the black business community knows the opportunities available within the BEP and the BELF.

FACE Coalition’s First Anniversary At the end of the inaugural fiscal year and the milestones achieved, FACE Coalition hosted a 100-guest event to celebrate the first year’s achievements. The guests at the event were some board members, business partners, the media, and key stakeholders. In addition to the event, the organization commissioned a national media project that allowed beneficiaries of the BELF across the country to share their experience and testimonies on how FACE Coalition through the BELF has helped their businesses grow.

Traditional Media Push At the start of the 2022/2023 fiscal year, the organization set an objective for eight published articles. At the end of the year, FACE Coalition recorded 22 pieces of published media articles across top-tier media outlets. These articles ranged from success stories of the BELF beneficiaries to advocacy for black representation in the boardroom and empowerment of black entrepreneurs. The media push recorded 9,547,690 impressions, indicating the reach of the traditional media efforts.

FACE Coalition 2022/2023 Annual Report

22

Salon International De La Femme Noire FACE Coalition sponsored and managed an exhibition booth at the annual Salon International de la Femme noire event that spotlights black women in Canada. It is an exclusive event for leaders and innovators in Canada with over 350 participants over the two-day exposition.

23

FACE Coalition 2022/2023 Annual Report

Startup Fest The Startup Fest platform gathers crucial information from the startup ecosystem. FACE Coalition sponsored the 2022 Startup Fest event and allowed us to engage with founders and potential BELF beneficiaries.

The 2022 Startup Fest had over 1000 participants over the three-day conference.

Conscious Economics Women’s Conference The FACE Coalition CEO, Tiffany Callender, was a speaker at the Conscious Economics Women’s Conference. Conscious Economics is an organization that helps organizations and individuals prepare for the New Economy and the Future of work. The conference had 150 women in attendance.

Small Business Week in Toronto The Black Founders Network (BFN) organized a competition for black entrepreneurs to pitch their business ideas to potential investors. The FACE Coalition CEO, Tiffany Callender, was a judge at the competition, which had 300 black entrepreneurs in attendance.

Casa Foundation’s Friends of Africa conference Casa Foundation for International Development aims to advance women, youths, and emerging leaders, through economic, entrepreneurship, and business initiatives; at the 2022 Friends for Africa Conference hosted by the Foundation, Tiffany Callender, FACE Coalition CEO, was a panelist. Over 150 people attended in person, and 200 attended virtually via live stream.

Black Professionals in Tech Network (BPTN) FACE Coalition sponsored 100 black entrepreneurs to attend the BPTN event for an opportunity to network with executives and decisionmakers from leading organizations in Canada. The event had over 1000 people in attendance.

FACE Coalition 2022/2023 Annual Report

24

Canadian Chamber of Commerce (CCC) During the 2022 Black History Month, Tiffany Callender, alongside 35 other Black Entrepreneurs, attended a virtual tour of Canadian Black History. The FACE Coalition CEO was invited to the CCC member chambers to meet and engage with the Canadian Chamber of Commerce members.

25

FACE Coalition 2022/2023 Annual Report

Black Entrepreneurship British Columbia (BEBC)

Women Entrepreneurship Knowledge Hub (WEKH)

FACE Coalition was present at the Black Business Summit hosted by the Black Entrepreneurship British Columbia (BEBC). The event had over 100 participants, and the FACE Coalition had the opportunity as a panelist during the summit.

At International Women’s Day in 2022, FACE Coalition CEO, Tiffany Callender, was a panelist and focus group leader at the Women in Entrepreneurship Knowledge Hub event with 200 women in attendance.

The WEKH focuses on strengthening the Canadian women’s entrepreneurship ecosystem with research, knowledge sharing, resources, and networking opportunities.

Public Services and Procurement Canada (PSPC) The Public Services and Procurement Canada (PSPC) hosted a ‘The Reverse Trade Show’ during the 2022/2023 fiscal year, where small businesses market their goods and services to buyers at the federal and municipal levels and learn about government and non-government business support programs. The trade show had about 50 small business owners showcasing their products and services, including FACE Coalition.

Fireside Chat with the US Ambassador to Canada During the 2022/2023 fiscal year, the FACE Coalition CEO, Tiffany Callender, facilitated a fireside chat and roundtable discussion with Black Entrepreneurs and Black Business Leaders in Canada with the US Ambassador to Canada, David L. Cohen.

Startop® Incubateur de Communautés Féminines FACE Coalition CEO, Tiffany Callender delivered the keynote address at the Flash Black Night networking and inspirational event hosted by Startop® Incubateur de Communautés Féminines, an incubator for women entrepreneurs. About 100 women attended the event.

FACE Coalition 2022/2023 Annual Report

26

27

FACE Coalition 2022/2023 Annual Report

The Other Canada (TOC) Podcast The FACE Coalition Website The organization’s website, launched in the 2021/2022 fiscal year, continues to be the source of information for our clients and the platform for the loan application process. During the 2022/2023 fiscal year, the organization upgraded its website to include a blog section for educating black entrepreneurs on financial literacy and valuable tips for running a successful business.

FACE Coalition also updated its loan application interface «BOBi» (Black Owned Business InterFACE) to enable applicants to monitor and get notifications at every stage of their application progress.

The FACE Coalition Newsletter The organization publishes a bi-monthly newsletter to keep the community informed and engaged. In the year under review, the newsletter reached over 100,000 recipients.

Social Media FACE Coalition recognizes social media as a channel for communication and stays active on different social media platforms to continually inform and engage with the black community. The FACE Coalition social media channels accumulated over 40,000 impressions during the year under review.

FACE Coalition 2022/2023 Annual Report

28

In the inaugural fiscal year, the organization introduced a podcast series tagged ‘The Other Canada’ to educate the black business community in Canada on the requirements and tips for running a successful business.

FACE Coalition published the podcast on YouTube, Facebook, and Instagram social handles.

The TOC series published its third season, sponsored by the Business Development Bank of Canada, with ten episodes in the 2022/2023 fiscal year. Guests of TOC podcasts ranged from Black entrepreneurs in various sectors of the economy, sharing their entrepreneurial journey, to the Sandra Odendahl, BDC’s Senior Vice President and Head, Sustainability, Diversity and Partnerships, sharing their thoughts on sustainable financing and the role sustainability plays in business.

Client Support Listening and engaging with clients and the black community is the hallmark of an organization passionate about creating black generational wealth. FACE Coalition set up a support center in the 2022/2023 fiscal year to get client feedback and engage with potential and existing clients, providing support and responding to enquiries.

During the year under review, the FACE Coalition Support Center managed over 11,000 calls in English and French. The organization observed that many applications needed to be completed and embarked on a project through the support center to call every loan applicant with incomplete applications and guide the applicants to completing their applications.

The FACE Coalition Support Center engaged over 2,000 applicants with incomplete applications.

29

FACE Coalition 2022/2023 Annual Report

Operational Efficiency To boost our operational efficiency and enhance the transparency of our procurement system, we’ve initiated the deployment of Procurify.

This cutting-edge, purchase-to-pay solution simplifies and streamlines our operational workflow from the initial request to the final payment.

By integrating Procurify, we aim to increase our productivity and significantly improve our compliance, thus ensuring adherence to the strictest procurement standards and policies.

Simultaneously, we have decided to implement Sage Intacct, a robust financial management and accounting software tailor-made for nonprofit organizations. By leveraging this innovative solution, we seek to significantly enhance our reporting efficiency, reduce manual tasks, and minimize errors. Moreover, Sage Intacct has many business development tools that will allow the organization to strategize and make data-driven decisions, fostering growth and sustainability. Also, with enhanced features for organizational oversight, Sage Intacct will provide FACE Coalition with the capabilities to maintain robust internal controls and achieve financial transparency.

We proactively foster cohesion across our organization in parallel with these software implementations. We’ve begun preparing for the annual in-person staff meeting, a pivotal event that allows us to align objectives, share insights, and celebrate achievements. This meeting is a vital opportunity to foster inter-departmental synergy, encourage collaboration, and nurture a shared vision, all of which contribute to our broader objective of increasing operational effectiveness. With these initiatives in motion, we are confident in our path toward a more efficient and cohesive organizational future.

Governance FACE began as a coalition of five black-owned founding business organizations, the Black Business Initiative, the Black Business and Professional Association, the Côte-des-Neiges Black Community Association, and Groupe 3737.

The founding organizations played a significant role in implementing a governance structure. They mandated the Board of Directors to implement a national governance structure, including a national representation of board members.

In the 2022/2023 fiscal year, two members of the Board resigned due to a conflict of interests. The Board began the recruitment process to fill the vacant board positions and review candidates of interest. The new Board members will be nominated at the 2023 annual general meeting.

During the year, the board members rolled out a governance policy manual and trained the Directors on good governance and organizational oversight.

Adjudication Committee The adjudication committee in the first fiscal year comprised nine Black volunteers with legal, finance, accounting, information technology and entrepreneurship backgrounds reporting directly to the Board.

During the 2021/2022 fiscal year, the Board of Directors approved the restructuring and move of the role of the adjudication committee from the Board and volunteers roles to a more permanent structure internally within the organization.

The adjudication committee is now the Credit Risk Management department headed by a full-time employee at the appropriate seniority level to quicken the adjudication process and increase the number of loans approved.

FACE Coalition 2022/2023 Annual Report

30

31

FACE Coalition 2022/2023 Annual Report

Volume/Value of Loans Processed Approved

Performance Results The FACE Coalition loan portfolio continues to grow, as seen in the yearon-year (YoY) comparison. The number of loans approved increased by 45% from $15,184,951 as of March 31, 2022 with 181 applications, to $22,033,389 at the end of the 2022/2023 fiscal year with 233 applications. The organization is also closing the gap between approved loans and disbursed. The gap reduced from 46% in the 2021/2022 fiscal year to 22% at the end of the 2022/2023 fiscal year. The performance result is a testament to increased workforce strength, education of the black business community and continuous engagement with the organization’s financial partners.

Disbursed

Volume

Value (C$)

Volume

Value (C$)

April 2022

26

2,555,000

21

1,788,431

May 2022

17

1,122,000

15

1,128,000

June 2022

13

1,730,000

20

2,259,008

July 2022

11

953,000

16

1,250,000

August 2022

20

1,715,000

14

1,015,891

September 2022

23

2,435,000

15

1,096,150

October 2022

27

2,372,815

16

2,500,523

November 2022

37

3,143,224

12

1,375,000

December 2022

15

1,940,000

15

1,259,900

January 2023

14

1,592,000

17

1,262,781

February 2023

11

969,000

7

1,006,384

March 2023

19

1,506,350

12

1,294,844

Grand Total

233

22,033,389

180

17,236,912

Year-on-Year (YoY) Comparison of Loans Disbursed Disbursed 2021/2022 (C$)

Disbursed 2022/2023 (C$)

April

-

1,788,431

May

-

1,128,000

June

-

2,259,008

July

-

1,250,000

August

896,735

1,015,891

September

1,078,725

1,096,150

October

1,417,000

2,500,523

November

1,315,842

1,375,000

December

1,023,279

1,259,900

January

1,118,500

1,262,781

February

767,000

1,006,384

March

548,000

1,294,844

8,138,081

17,236,912

Grand Total FACE Coalition 2022/2023 Annual Report

32

33

FACE Coalition 2022/2023 Annual Report

Loans Processed

by Province (2022/2023)

YoY Comparison of Loans Disbursed by Province

Approved (C$)

Disbursed (C$)

Disbursed 2021/2022(C$)

Disbursed 2022/2023(C$)

Alberta

2,584,000

1,914,726

Alberta

786,425

1,914,726

British Columbia

1,006,000

501,000

British Columbia

50,000

501,000

Manitoba

590,000

40,000

Manitoba

50,000

40,000

New Brunswick

625,820

591,220

New Brunswick

677,000

591,220

Newfoundland and Labrador

25,000

25,000

Newfoundland and Labrador

173,784

25,000

-

-

Northwest Territories

35,000

-

Nova Scotia

567,000

931,000

Nova Scotia

525,000

931,000

Nunavut

250,000

-

Nunavut

-

-

Ontario

7,753,574

5,727,966

Ontario

3,292,872

5,727,966

40,000

40,000

-

40,000

8,537,995

7,412,000

Quebec

2,448,000

7,412,000

54,000

54,000

Saskatchewan

100,000

54,000

-

-

-

-

22,033,389

17,236,912

8,138,081

17,236,912

Northwest Territories

Prince Edward Island Quebec Saskatchewan Yukon Grand Total

$

CAD

17.2 M

Disbursed

Prince Edward Island

Yukon Grand Total

+112 % $

CAD

8.1 M

$

CAD

Disbursed 2021-2022

FACE Coalition 2022/2023 Annual Report

34

17.2 M

Disbursed 2022-2023

35

FACE Coalition 2022/2023 Annual Report

Loans Processed

by Sector (2022/2023)

YoY Comparison of Loans Disbursed by Sector

NAIC Code Sector

Approved (C$)

Disbursed

NAIC Code Sector 11

Volume

Value (C$)

Volume

Value (C$)

Disbursed 2021/2022 (C$)

Disbursed 2022/2023 (C$)

Agriculture, forestry, fishing, and

50,000

130,000

21

hunting Mining, quarrying, and oil and gas

-

55,000

22

extraction Utilities

50,000

-

11

Agriculture, forestry, fishing, and

1

40,000

2

130,000

21

hunting Mining, quarrying, and oil and gas

1

55,000

1

55,000

23

extraction Construction

14

1,938,700

10

1,411,311

23

Construction

250,000

1,411,311

31-33

Manufacturing

26

3,430,000

18

3,023,726

31-33

Manufacturing

790,000

3,023,726

41

Wholesale trade

14

1,022,000

15

1,017,000

41

Wholesale trade

689,000

1,017,000

44-45

Retail trade

33

2,211,000

28

1,999,000

44-45

Retail trade

971,000

1,999,000

48-49

Transportation and warehousing

21

1,711,000

14

1,251,000

48-49

Transportation and warehousing

678,725

1,251,000

51

Information and cultural industries

5

1,130,650

3

515,000

51

Information and cultural industries

415,000

515,000

52

Finance and insurance

4

380,000

4

205,000

52

Finance and insurance

320,000

205,000

53

Real estate and rental and leasing

5

430,000

2

310,505

53

Real estate and rental and leasing

279,495

310,505

54

Professional, scientific, and

28

2,813,000

25

2,431,350

54

Professional, scientific, and

866,925

2,431,350

391,735

1,858,800

343,000

77,000

20

2,280,000

19

1,858,800

56

2

200,000

3

77,000

61

technical services Administrative and support, waste management and remediation services Educational services

61

technical services Administrative and support, waste management and remediation services Educational services

62

Health care and social assistance

9

809,820

8

840,685

62

Health care and social assistance

500,000

840,685

71

Arts, entertainment, and recreation

7

385,000

6

315,535

71

Arts, entertainment, and recreation

350,000

315,535

72

Accommodation and food services

23

2,282,219

12

1,321,000

72

Accommodation and food services

989,784

1,321,000

81

Other services (except public

19

845,000

10

475,000

81

Other services (except public

203,417

475,000

91

administration) Public administration

8,138,081

17,236,912

56

Total

FACE Coalition 2022/2023 Annual Report

36

1

70,000

-

-

233

22,033,389

180

17,236,912

administration) Total

37

FACE Coalition 2022/2023 Annual Report

Volume of Loans Disbursed

by Demographics (2022/2023)

Volume of Loans Disbursed

by Business Type (2022/2023)

Women 50 (28%)

2 (1%)

Newcomers (immigrants)

60 (33%)

Partnership Sole proprietorship

29 (16%)

LGBTQ2+

Corporation

Youth

26 (14%)

149 (83%)

133 (74%)

YoY Comparison of Loans Disbursed by Demographics 74%

150

133

120

Volume for 2022/2023 Volume for 2021/2022

81%

96 90 32%

38

50

32%

60

14%

38

9%

30 0

11 Women

FACE Coalition 2022/2023 Annual Report

Youth

Newcomers (immigrants)

26

LGBTQ2+

38

149

150

Volume for 2022/2023

120 90

33%

28%

60

YoY Comparison of Loans Disbursed by Business Type

Volume for 2021/2022

88

60

27

30 0

29 3

Corporation

Sole proprietorship

2

Partnership

39

FACE Coalition 2022/2023 Annual Report

Volume of Loans Disbursed

by Business Size (2022/2023)

YoY Comparison of Loans Volumes Disbursed by FACE Coalition and Financial Partners

Medium-size businesses (100-499 employees) 200

180

Small businesses (50-99 employees)

26 (14%)

Micro Businesses (5-49 employees) Nano businesses (1-4 employees)

2021/2022

150

100

81

59 21

154 (86%)

YoY Comparison of Loans Disbursed

by Business Size 200

Volume for 2022/2023 Volume for 2021/2022

150

FACE Coalition

13 15

BDC

3 0

Alterna

Vancity

Total

YoY Comparison of Disbursed Loans

by Business Stage 150

71%

2022/2023 2021/2022

120

90

100

60

50

0

118

106

50

0

2022/2023

Nano businesses 1-4 employees

FACE Coalition 2022/2023 Annual Report

Micro Businesses 5-49 employees

Small businesses 50-99 employees

Medium-size businesses 100-499 employees

40

30

48% 29% 57

52

52%

61

128

0 Startup Businesses

Existing Businesses 41

FACE Coalition 2022/2023 Annual Report

Applications Received for Financing vs Funding Disbursed 500000000

2.3%

2022/2023

$417,129,147 400000000

Results Summary - All Time

0.2%

FACE Funded ($11.54 million)

2021/2022

2 838

Alterna Funded ($0.58 million)

31.8%

300000000 45.5%

68.2%

200000000

Vancity Funded ($0.06 million)

52.0%

$161,494,733

1 246

100000000

0

BDC Funded ($13.2 million)

Applications Received for Financing

118

180

$8,138,081

$17,236,912

Disbursed Loans Undisbursed Loans

Funding Disbursed

$

CAD

$

CAD

37.2 M

Total approved 2021-2023

25.4 M

Total disbursed 2021-2023

FACE Coalition 2022/2023 Annual Report

42

43

FACE Coalition 2022/2023 Annual Report

Government of Canada The Black Entrepreneurship Loan Fund, a component of the Black Entrepreneur Program, is the result of a partnership between FACE, the Government of Canada, BDC and private sector financial institutions.

The Government of Canada has committed $30 million to FACE for loans ranging from $25,000 to $100,000.

FACE is managing the Government of Canada’s contribution by providing loans of up to $100,000 to support Black business owners and entrepreneurs across Canada to lay the foundation for future success and long-term changes for black entrepreneurs.

Business Development Bank of Canada (BDC) BDC has committed $130 million to the Black Entrepreneurship Loan Fund and finance loans of $100,000 to $250,000 while providing advice, administrative support and loan servicing, including disbursement of funds. As Canada’s bank for entrepreneurs, BDC also offers tools and s free resources to black business owners. FACE, in turn, is responsible for arbitrations relating to this program, including the receipt and processing of loans. It acts as the executing agent for the loan fund.

TD Bank

Partnerships In addition to managing the BELF, FACE Coalition works closely with other members of the Black Entrepreneurship Program, such as black ecosystem organizations in different provinces, to help entrepreneurs write their business plans and gain financial expertise. After the fund’s creation, FACE has benefited from the support of partners whose diversity programs align with its mission and values. These have enabled loan seekers to access more relevant information, resources, and training.

FACE Coalition 2022/2023 Annual Report

44

FACE has partnered with TD Bank as a sponsor to launch the “Powering Black Entrepreneurship” program. This program offered 50 scholarships to help Black entrepreneurs across Canada access professional expertise to help them prepare their business and financial documents, including business plans, financial statements, and tax returns, thus, improving their ability to access financing.

45

FACE Coalition 2022/2023 Annual Report

Alterna Savings and Vancity

Sedulous Women

Alterna Savings and Vancity Credit Unions have partnered with FACE to offer a pilot microloan program, administering microloans ranging from $10,000 to $25,000 in Ontario and British Columbia, respectively.

Credit unions have long served underserved entrepreneurs, helping them become economically and socially self-sufficient. Alterna (Ontario) and Vancity (British Columbia) will honour approved loans in their respective provinces.

FACE Coalition partnered with Sedulous Women to provide 15 sponsored spots in the RETAIL ENTREPRENEURSHIP ACCELERATION PROGRAM (REAP) with dSWL (de Sedulous Women Leaders). The partnership between FACE Coalition and Sedulous Women empowered women entrepreneurs, fostering growth and success in the retail industry through mentorship and coaching. Together, they created an inclusive environment for diverse women entrepreneurs to excel in retail.

HubSpot MNP As one of the largest national accounting, advisory and tax firms, MNP provides pro bono and business training.

Black Business Professional Association (BBPA)

HubSpot provides FACE with a customer relationship management CRM system that helps notify members about holding virtual events and share BELF-related information. HubSpot also offers startups that are beneficiaries of the BELF a 30% discount on its Professional and Enterprise products.

Equifax

BBPA

Equifax also provides FACE with loan applicant credit reports.

In the 2022/2023 fiscal year, FACE Coalition partnered with the Black Business Professional Association (BBPA) on their Capital Skills program, where BBPA referred entrepreneurs that have undergone the Capital Skills program to FACE Coalition for funding.

Groupe 3737 FACE Coalition also collaborated with Groupe 3737 and received referred loan applications from entrepreneurs that have gone through the Groupe 3737 accelerator program.

FACE Coalition 2022/2023 Annual Report

46

47

FACE Coalition 2022/2023 Annual Report