Woveo and BDC Launch $10-Million Microlending Program for SMBs
AI-generated image · Bay Street Wire
The partnership targets underserved entrepreneurs and newcomers, though eligibility requirements and regional gaps remain.
Calgary-based FinTech Woveo has partnered with the Business Development Bank of Canada (BDC) to launch a $10-million microlending program, BetaKit reports. The initiative provides loans of up to $25,000 to small and medium-sized businesses (SMBs) across Canada, excluding Québec. Woveo CEO and co-founder Jonah Chininga stated that the company intends to expand into Québec by 2027 once French-language requirements are met.
The program is designed for new-to-Canada entrepreneurs and small businesses struggling to access traditional financing. Woveo utilizes AI and alternative data—including social collateral, business performance signaling, and real-time cashflow—to evaluate risk. Chininga, who immigrated to Canada, noted that traditional systems often fail to recognize the potential or financial profiles of such entrepreneurs.
According to BetaKit, the partnership is part of BDC’s Community Banking Initiative, which launched in 2024 to support underserved entrepreneurs through a network of over 80 local organizations. Woveo aims to finance 50,000 SMBs by 2030.
However, the program maintains specific eligibility criteria: applicants must be based in Canada, have operated for over 12 months, maintain a minimum credit score of 600, and generate at least $5,000 in monthly revenue.
The launch comes as SMB lending in Canada declines. BetaKit cites an OECD report showing that lending to small businesses dropped from 16 percent to 5.8 percent between 2011 and 2024. Additionally, Woveo reports that 33 percent of Canadian SMBs are underfinanced and that loan rejection rates for amounts under $50,000 stand at 50 percent.