Calgary-based FinTech Woveo is partnering with the Business Development Bank of Canada (BDC) to launch a microlending program.
Announced on Wednesday, the $10-million partnership will provide access to loans of up to $25,000 for small and medium-sized businesses (SMBs) across Canada, with the exception of Québec, where Woveo is still working to meet the province’s French-language requirements. Woveo co-founder and CEO Jonah Chininga said the company aims to expand to Québec in 2027.
“Our initiative with BDC will help more entrepreneurs build sustainable businesses and create a pathway into the mainstream financial system.”
Jonah Chininga,
Woveo
The microlending program is intended to help small businesses or new-to-Canada entrepreneurs access financing and build credit when traditional means of doing so may be out of reach.
“As an entrepreneur who immigrated to Canada, I understand how difficult it can be to build a business when traditional systems do not fully recognize your experience, potential, or financial profile,” Chininga said in a statement. “Our initiative with BDC will help more entrepreneurs build sustainable businesses and create a pathway into the mainstream financial system.”
Founded in 2020, Woveo’s platform helps Canadian small enterprises and newcomers to the country access credit and build credit history. The platform combines AI with alternative data streams like real-time cashflow information, credit bureau data, business performance signalling, and social collateral to assess lending risk and repayment performance. Woveo has a goal of financing 50,000 SMBs by 2030.
Eligibility for the program requires that businesses have at least $5,000 in monthly revenue, are located in Canada, have been operational for more than 12 months, and have a minimum credit score of 600 or more. Applicants are able to check eligibility, complete applications, and receive pre-approval through Woveo’s website.
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Today’s announcement brings together Woveo with BDC’s Community Banking Initiative, a program launched in 2024 with the goal of providing financing and advice to underserved entrepreneurs via a network of partners. The initiative’s stated goal is to partner with more than 80 local organizations to grow the number of small businesses in Canada by 10 percent.
Timing for the partnership coincides with a moment when business lending directed at SMBs is falling in Canada. An OECD report on SMBs and entrepreneurs found that between 2011 and 2024, lending to small businesses fell from 16 percent to 5.8 percent. Meanwhile, 33 percent of Canadian SMBs are underfinanced, with a 50 percent rejection rate for loans under $50,000, according to Woveo. Those factors present an opportunity for Woveo and BDC to pick up the slack as small businesses seek alternative options for financing amid mounting economic pressure.
BetaKit’s Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta.
Feature image courtesy Woveo.