BDC and Woveo Launch $10M Microlending Program for Underserved Entrepreneurs

What was announced

The Business Development Bank of Canada and Woveo, an AI-powered fintech platform, have launched a $10 million microlending program designed to expand access to capital for Canadian entrepreneurs who have been overlooked by traditional lenders. The program offers loans of up to $25,000 and combines accessible financing with personalized business support delivered through community organizations.

This initiative addresses a significant financing gap in Canada. According to the Organisation for Economic Co-operation and Development, the share of new Canadian business lending directed to small and medium-sized businesses fell from 16% in 2011 to just 5.8% in 2024, demonstrating the growing challenge smaller businesses face when seeking capital.

How the program works

Woveo's approach integrates modern financial technology with community-based lending practices. The platform uses real-time cash-flow information, credit bureau data, business-performance signals, and what it calls social collateral to assess creditworthiness through an AI-assisted underwriting process. This method aims to provide a more complete picture of an entrepreneur's financial profile while leveraging trusted local relationships to deliver faster lending decisions.

The program helps entrepreneurs establish credit histories, strengthen their financial profiles, and build confidence in accessing capital. As their financial situations improve, participants are positioned to graduate toward larger financing from mainstream financial institutions. Woveo reports it has facilitated more than 1,200 loans through its existing community-based lending programs with a 98% repayment rate.

Why this matters for small businesses

Traditional lenders often find small-dollar business loans uneconomical because conventional underwriting costs are high relative to the loan size. This structural challenge has made it difficult for entrepreneurs with limited credit histories or unconventional financial profiles to access first loans. Research cited in the announcement shows that entrepreneurs who gain access to financing can more than double their average annual sales growth and nearly triple their annual job creation. Additionally, small and medium-sized businesses that receive financing support achieve survival rates of approximately 65%, compared with 46% for those without such support.

Next steps for interested businesses

Entrepreneurs interested in the program can visit woveo.com/bdc to learn more details and check their eligibility. The source does not specify application deadlines or the program launch date, so interested businesses should consult the official program page for current timelines and requirements.