Small Business Tips
Small Business Loans and Grants for Women in Canada
Looking to borrow or raise money to start a small business in Canada? The bank isn't your only option. In fact, there are many government and non-government programs that are in place to help entrepreneurs launch or grow a business.
Keep reading for a list of small business loans and grants that are available to women in Canada, and find out if you qualify for them.
What are the best small business loans for women?
Before we delve into the leading business loans that are available to women entrepreneurs in Canada, keep in mind that most of them emphasize location rather than demographics. Luckily, the government of Canada has created a handy tool that you can use to find the most relevant small business loans for women.
With this in mind, some small business loans aim towards helping Canadian women start and grow their businesses. Here is a list of Canada's top small business loans for female entrepreneurs.
BDC Women in Technology Venture Fund (All of Canada)
The Business Development Bank of Canada recognizes that women are under-represented and underfunded in Canadian investment and technology companies, and it wants to change that. For this reason, the BDC has decided to invest $200M in early-stage technology companies that have women executives. You can apply on the BDC's website.
Microloans for Low-Income Women in Ontario
This program helps low-income women based in certain parts of Ontario build and grow businesses. The program trains women in low-income brackets to allow them to learn the skills needed to start and run a small business. Skills taught include financial literacy training, mentoring, and skills development. It also provides microloans for women who become business-ready as a result of these training programs.
Femmessor Loans for Women (Quebec)
Femmessor is a Quebec organization that contributes to the development of female entrepreneurs. The organization seeks to support the creation, growth, and acquisition of viable businesses owned and led by women. It does so by providing women with the resources that are crucial for success.
Femmessor has two branches of funding for women entrepreneurs. These include conventional loans and business equity investments.
Conventional loans: Start-up program
This program grants loans of $20k to $50 to women-owned businesses. To qualify, a woman - who plays a strategic role in the company - must own a minimum of 25% of the business's shares. This loan can serve to finance tangible or intangible assets, working capital, product development, the development and commercialization of new products and services, or buying shares.
Conventional loans: Business growth, acquisitions, and transfers
The Femmessor program also grants loans of $20K to $150K to women who are looking to expand, acquire, or transfer a business to the next generation. Interest rates are based on the borrower's risk profile. The maximum amortization period is five years and loans are subject to file processing and monitoring fees.
Equity Investments
Femmessor also invests up to $250K in companies that have existed for at least three years. As with the start-up program, companies must have at least one woman in a strategic company role, and she must hold at least 25% of the company's shares. This option allows the company to hold on to a majority of its shares, with no pressure to liquidate. It can also make it easier to secure additional financing from banks and other financial partners.
You can find out more about Femmessor loans and equity investments by visiting their website (French only).
Women's Enterprise Centre (British Columbia)
This organization offers business loans of up to $150K to women based in British Columbia. Loans can be used for things like start-up costs, business acquisition expenses or the cost of expanding a business. Loans granted by the BC Women's Enterprise Centre also come with free ongoing business advice, mentoring, and business skills training.
