Block Invests $5 Million CAD in Alterna Savings, Furthering Support for Underserved Communities
Author
Block
Author
Block
Investment creates greater lending power through a continuous cycle of reinvestment, fostering commitment to economic inclusion
Alterna Savings will benefit from a $5 million (CAD) investment from Block (formerly Square, Inc.) dedicated to accelerating Alterna’s ability to make loans to more Black-owned businesses and entrepreneurs, who are often excluded from accessing capital from traditional financial institutions.
Researchers estimate that Black entrepreneurs in Canada are denied financing from traditional banks eight times more often than non-Black business owners. Addressing this inequality, over the past two decades, Alterna has disbursed over $10 million in loans to individuals in underserved communities including Black entrepreneurs, new Canadians, and women. Block’s investment will increase Alterna’s ability to provide continuous lending power to reinvest back into underserved communities across Ontario.
Social Enterprise Kick-Starts Success
Ryan Knight, an Alterna member and founder of the fast-growing Detailing Knights — the waterless car detailing service recently featured and funded on Dragon’s Den — says access to micro and mid-sized loans in the $25,000 range from Alterna was critical for the growth of his business.
“Alterna was the only financial institution that believed in my vision after many others rejected my business idea, plan and my potential as an entrepreneur,” says Ryan, who benefitted from a crucial $5,000 micro-loan to kick-start his now thriving business back in 2020. Most recently, Ryan qualified for a $25,000 Alterna social enterprise loan, fuelling his business expansion and exploration of future franchising. “Community-based financing is the only way many entrepreneurs like me get the chance to make our ideas and dreams a reality,” he explains.
Financial Inclusion for All
“Alterna has a longstanding commitment to addressing Canada’s socio-economic inequity by intentionally providing more flexible funding and personalized support to promising entrepreneurs and business owners,” says Rob Paterson, President & CEO, Alterna Savings. “Block’s investment reflects our shared priority to foster economic inclusion through collaborative, community-based action, and will empower entrepreneurs — and as a result, countless communities,” says Susan Henry, Director of Community Impact & Financial Inclusion, Alterna Savings.
Economic Empowerment in Action
“Our investment helps unlock lending power, giving Alterna the ability to extend more loans to Black entrepreneurs and racialized communities. When those loans are repaid, Alterna redeploys the funds, creating a cycle of continuous reinvestment. This facilitates long-term impact in underserved communities,” explains Clayton Wilks, Global Financial Inclusion Lead at Block.
About Alterna’s Community Microfinance Program
Since 2000, Alterna’s award-winning Community Microfinance Program has issued over $10 million in impact loans to more than 1,500 individuals and organizations, empowering underserved communities and reducing barriers to banking. Designed to support low-income individuals, startups, new Canadians, and entrepreneurs, the program fosters financial independence and inclusion. Alterna’s MicroSavings Program helps entrepreneurs build financial reserves by saving alongside loan repayments, enhancing long-term resilience.
About Alterna Savings
As Ontario’s first full-service, member-owned cooperative financial institution outside Quebec, Alterna Savings has been the Good in Banking® for over 115 years. Through 40 branches across Ontario and robust digital channels, we serve more than 210,000 members with a comprehensive suite of financial services. Members enjoy access to over 43,000 surcharge-free ATMs across North America through THE EXCHANGE Network in Canada and the Allpoint Network in the U.S.
Alterna Savings & Credit Union Limited operates as Alterna Savings. Alterna Savings is a credit union operating in Ontario. For information on deposit insurance, please ask for a brochure at the credit union or visit the FSRA’s website at www.fsrao.ca.
About Block’s Social Impact Investment
In 2020, Block established a $100 million (USD) social impact investment in support of minority and underserved communities, driven by the company’s purpose of economic empowerment and its ongoing commitment to racial equality. $10 million has been allocated as an investment in international funds and lenders focusing on underserved communities in Block’s markets outside the U.S.
About Block
Block (NYSE: SQ) is a global technology company with a focus on financial services. Made up of Square, Cash App, Afterpay, and TIDAL, we build tools to help more people access the economy. Square makes commerce and financial services easy and accessible for sellers with its integrated ecosystem of technology solutions. With Cash App, anyone can easily send, spend or invest their money in stocks or bitcoin. Afterpay brings Square and Cash App together, connecting consumers and businesses. Artists use TIDAL to help them succeed as entrepreneurs and connect more deeply with fans.
Author
Block
Investment creates greater lending power through a continuous cycle of reinvestment, fostering commitment to economic inclusion
Alterna Savings will benefit from a $5 million (CAD) investment from Block (formerly Square, Inc.) dedicated to accelerating Alterna’s ability to make loans to more Black-owned businesses and entrepreneurs, who are often excluded from accessing capital from traditional financial institutions.
Researchers estimate that Black entrepreneurs in Canada are denied financing from traditional banks eight times more often than non-Black business owners. Addressing this inequality, over the past two decades, Alterna has disbursed over $10 million in loans to individuals in underserved communities including Black entrepreneurs, new Canadians, and women. Block’s investment will increase Alterna’s ability to provide continuous lending power to reinvest back into underserved communities across Ontario.
Social Enterprise Kick-Starts Success
Ryan Knight, an Alterna member and founder of the fast-growing Detailing Knights — the waterless car detailing service recently featured and funded on Dragon’s Den — says access to micro and mid-sized loans in the $25,000 range from Alterna was critical for the growth of his business.
“Alterna was the only financial institution that believed in my vision after many others rejected my business idea, plan and my potential as an entrepreneur,” says Ryan, who benefitted from a crucial $5,000 micro-loan to kick-start his now thriving business back in 2020. Most recently, Ryan qualified for a $25,000 Alterna social enterprise loan, fuelling his business expansion and exploration of future franchising. “Community-based financing is the only way many entrepreneurs like me get the chance to make our ideas and dreams a reality,” he explains.
Financial Inclusion for All
“Alterna has a longstanding commitment to addressing Canada’s socio-economic inequity by intentionally providing more flexible funding and personalized support to promising entrepreneurs and business owners,” says Rob Paterson, President & CEO, Alterna Savings. “Block’s investment reflects our shared priority to foster economic inclusion through collaborative, community-based action, and will empower entrepreneurs — and as a result, countless communities,” says Susan Henry, Director of Community Impact & Financial Inclusion, Alterna Savings.
Economic Empowerment in Action
“Our investment helps unlock lending power, giving Alterna the ability to extend more loans to Black entrepreneurs and racialized communities. When those loans are repaid, Alterna redeploys the funds, creating a cycle of continuous reinvestment. This facilitates long-term impact in underserved communities,” explains Clayton Wilks, Global Financial Inclusion Lead at Block.
About Alterna’s Community Microfinance Program
Since 2000, Alterna’s award-winning Community Microfinance Program has issued over $10 million in impact loans to more than 1,500 individuals and organizations, empowering underserved communities and reducing barriers to banking. Designed to support low-income individuals, startups, new Canadians, and entrepreneurs, the program fosters financial independence and inclusion. Alterna’s MicroSavings Program helps entrepreneurs build financial reserves by saving alongside loan repayments, enhancing long-term resilience.
About Alterna Savings
As Ontario’s first full-service, member-owned cooperative financial institution outside Quebec, Alterna Savings has been the Good in Banking® for over 115 years. Through 40 branches across Ontario and robust digital channels, we serve more than 210,000 members with a comprehensive suite of financial services. Members enjoy access to over 43,000 surcharge-free ATMs across North America through THE EXCHANGE Network in Canada and the Allpoint Network in the U.S.
Alterna Savings & Credit Union Limited operates as Alterna Savings. Alterna Savings is a credit union operating in Ontario. For information on deposit insurance, please ask for a brochure at the credit union or visit the FSRA’s website at www.fsrao.ca.
About Block’s Social Impact Investment
In 2020, Block established a $100 million (USD) social impact investment in support of minority and underserved communities, driven by the company’s purpose of economic empowerment and its ongoing commitment to racial equality. $10 million has been allocated as an investment in international funds and lenders focusing on underserved communities in Block’s markets outside the U.S.
About Block
Block (NYSE: SQ) is a global technology company with a focus on financial services. Made up of Square, Cash App, Afterpay, and TIDAL, we build tools to help more people access the economy. Square makes commerce and financial services easy and accessible for sellers with its integrated ecosystem of technology solutions. With Cash App, anyone can easily send, spend or invest their money in stocks or bitcoin. Afterpay brings Square and Cash App together, connecting consumers and businesses. Artists use TIDAL to help them succeed as entrepreneurs and connect more deeply with fans.