WEOC National Loan Program

LOAN ELIGIBILITY AND USES

Key information about loan eligibility and uses of loans access through the WEOC National Loan Program.

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

Have more questions? Reach out to the WEOC loans team at [email protected]

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