WINNIPEG — The federal government has renewed $30 million in funding for a national microloan program intended to help women start or expand businesses.

Innovation, Science and Economic Development Canada announced the funding Tuesday for the Women Entrepreneurship Loan Fund. Four non-profit organizations will deliver loans of up to $50,000, alongside business support intended to help borrowers plan and operate their companies.

Four organizations will deliver loans

The delivery partners are Women’s Enterprise Organizations of Canada, the National Aboriginal Capital Corporations Association, Nventure and Evol.

The federal program says it is designed particularly for start-ups, sole proprietorships and entrepreneurs from under-represented groups who may have difficulty obtaining conventional financing. Applicants do not receive money directly from the federal department; they apply through one of the participating loan administrators and remain subject to that organization’s eligibility and credit process.

Ottawa says the fund has provided nearly 1,600 loans totalling more than $50 million since it launched in 2022. Those figures are government program results and do not indicate that every applicant was approved or that the new $30-million allocation has already been lent.

Part of a broader strategy renewal

The announcement follows a June commitment of $173.7 million over five years to renew the broader Women Entrepreneurship Strategy. That earlier package included funding for the loan program as well as business-support networks and other initiatives.

The government says the strategy has supported more than 600,000 women entrepreneurs since 2018. The newly announced loan-fund renewal focuses on access to capital, while the program’s non-profit partners also provide mentoring and other business services.

Prospective borrowers should consult the federal program page and the relevant delivery organization for current application requirements, terms and availability. A federal funding announcement is not a guarantee of financing.

Sources: Innovation, Science and Economic Development Canada, October 13; Women Entrepreneurship Loan Fund program page; Women Entrepreneurship Strategy renewal, June 22.

Lead image: Flag of Canada via Wikimedia Commons, public domain. Illustrative image.