Calgary-based financial technology company Woveo has partnered with the Business Development Bank of Canada (BDC) to launch a microlending program aimed at small and medium-sized businesses across the country.
The partnership, announced Wednesday, is valued at $10 million and will provide eligible businesses with access to loans of up to $25,000. The program will be available across Canada except in Québec, where Woveo says it is still working to meet the province’s French-language requirements. Woveo co-founder and CEO Jonah Chininga said the company intends to expand the program into Québec in 2027.
The initiative is designed to help small businesses and newcomers to Canada access financing and establish credit history in cases where conventional lending channels may not be accessible to them.
“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.”
How the Program Works
Woveo was founded in 2020 and operates a platform that helps small Canadian enterprises and newcomers access credit and build a credit history. The platform uses artificial intelligence combined with alternative data sources — including real-time cashflow information, credit bureau data, business performance signals, and social collateral — to evaluate lending risk and repayment likelihood. The company has set a goal of financing 50,000 small and medium-sized businesses by 2030.
To qualify for the new program, businesses must generate at least $5,000 in monthly revenue, be based in Canada, have been operating for more than 12 months, and hold a minimum credit score of 600. Businesses can check their eligibility, submit applications, and receive pre-approval directly through Woveo’s website.
Part of a Broader BDC Push
The partnership connects Woveo with BDC’s Community Banking Initiative, a program launched in 2024 that aims to deliver financing and advisory support to underserved entrepreneurs through a network of partner organizations. The initiative has a stated goal of partnering with more than 80 local organizations and growing the number of small businesses in Canada by 10 percent.
Small Business Lending Has Been Shrinking
The timing of the partnership comes as lending to small businesses in Canada has been on the decline. According to an OECD report on small businesses and entrepreneurs, lending to small businesses fell from 16 percent in 2011 to 5.8 percent in 2024.
Woveo also cites figures showing that 33 percent of Canadian small and medium-sized businesses are underfinanced, with a rejection rate of 50 percent for loan applications under $50,000. Those conditions are creating an opening for programs like the Woveo-BDC partnership as small businesses look for alternative sources of financing amid continued economic pressure.
This article references reporting from:
