Accessing the WEOC Loan Program for Entrepreneurs

About Loan Applications

Loan applicants must be a Canadian citizen or a legal entity owned and controlled by a Canadian citizen, including:

• A sole proprietorship, an unincorporated business that is owned by one individual;
• A for-profit small Canadian business federally/provincially/territorially incorporated in Canada that is controlled directly or indirectly by one or more resident persons;
• A for-profit co-operative corporation incorporated under a federal, provincial or territorial co-operative Act, or;
• A social enterprise that earns revenue from the regular supply of personal property/goods and services and meets the profitability and equity criteria above.
• Not-for-profit organizations are not eligible for loans.

    Individuals submitting loan applications must be:

    • At least 19 years of age
    • A Canadian citizen or Permanent Resident
    • Residing in Canada

    About the Business

    Eligible businesses are those which are over 50% women-owned

    • A business plan, including cash flow forecasts for a minimum of two years is required for the business.
    • Maximum business revenues: up to $2 million in gross annual revenues

    About the Loans

    • Loans are available to all industries/sectors
    • Maximum loan amount: up to $50,000
    • Loan type/length: term loans of up to 5 years
    • Maximum interest rate: up to prime + 4%
    • Maximum loan management fee: 1% or up to $500 per loan
    • Loans issued by WEOC to eligible borrowers are not grants, contributions or forgivable loans.

    Eligible Expenses:

    • Capital assets (including machinery/equipment, leasehold/property improvements)
    • Office and equipment rental
    • Salaries and benefits (excluding owner’s salary)
    • IT/Software license purchase
    • Professional services
    • Inventory/Supplies
    • Intellectual Property
    • Working Capital (e.g. payroll, lease payments, accounts management, rent, overhead costs)
    • Digital (including website/E-commerce development)
    • Marketing/advertising/business promotion
    • Employee training
    • Short term receivable financing (i.e. financing to service a contract)
    • Business start-up costs (legal fees, business incorporation fees, business plan preparation, etc.)

    Ineligible Expenses:

    • Capital expenditures on real property (e.g. land/building purchases)
    • Goodwill
    • Amortization Costs
    • Purchase of assets for more than fair market value
    • Owner’s salary
    • Payment of bonuses
    • Refinancing existing debt
    • Purchase of stocks/shares
    • Franchise fees
    • Research and development
    • Management fees
    • Dividend payout
    • Increase to shareholder or management committee compensation

    WEOC National Loan Program is possible with funding provided by the Government of Canada through the Women’s Entrepreneurship Strategy.