Royal Bank of Canada (RY) announced Tuesday the launch of the RBC Black Business Loan (BEBL). This new financing solution allows Black entrepreneurs in Canada to obtain loans of up to C$250,000 to start, manage and grow their businesses.
It complements the Bank's existing resources and investments to support the growth of black entrepreneurs in Canada.
"Black entrepreneurs continue to be disproportionately affected by a lack of access to capital and resources that are critical to their success. The financial services sector plays an important role in enabling the inclusion and prosperity of businesses to foster greater diversity in our communities, and accelerate our collective economic growth," said Greg Grice, EVP, Business Financial Services, RBC.
“That's why we're proud to offer equitable and inclusive funding solutions, like the RBC Black Entrepreneur Business Loan, that are tailored to the needs of Black entrepreneurs to help them start and scale their business successfully."
The RBC Black Business Loan is part of RBC's C$100-million, five-year commitment in July 2020 to support the prosperity and growth of Black entrepreneurs, which led to the creation of the RBC Black Entrepreneur Program.
This program builds on three main pillars to help black entrepreneurs start, manage and grow their businesses: access to capital; access to a network of experts, mentors, and business resources; and the bringing together of community leaders in a concrete effort to highlight and foster the growth of Black-owned businesses. (See Insiders’ Hot Stocks on TipRanks)
On September 1, Credit Suisse analyst Mike Rizvanovic kept a Buy rating on RY with a C$144 price target. This implies 12.4% upside potential.
The rest of the Street is bullish on RY with a Strong Buy consensus rating based on eight Buys and two Holds. The average Royal Bank of Canada price target of C$144.21 implies 12.5% upside potential to current levels.
TipRanks’ Smart Score
RY scores an 8 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock returns should outperform the overall market.