Discover our tips and resources to support you in applying for small business funding for women in Canada.
According to data posted on The Women Entrepreneurship Knowledge Hub’s (WEKH) website, only 14% of women use a business loan and only 4% of venture capital funding in Canada is received by women-owned businesses.
Yet, women say that one of their biggest hurdles in growing their businesses is gaining capital.
If you’re looking for small business funding for women in Canada, then you’re in luck. There are a ton of options available to you, and we’re here to help you navigate through some of them.
The Canadian government has a bunch of funding programs specifically for women-owned businesses.
One of the most popular is the Women Entrepreneurship Strategy, which offers up to $100,000 in funding through the Women Entrepreneurship Fund. That’s a lot of dough!
This fund aims to increase women’s access to financing, talent, networks, and expertise, and to promote gender equality in entrepreneurship.
But wait, there’s more! You could also try applying for a loan through the Canada Small Business Financing Program.
They offer loans of up to $1 million for small businesses, and women-owned businesses might even be eligible for extra funding. How cool is that?
The loan can be used to purchase land or buildings, to buy equipment, or to cover other costs of starting or expanding a business.
Now, if you’re looking to take your business to the next level, you might want to consider venture capital. There are a bunch of venture capital firms out there that invest in early-stage businesses with high growth potential.
One such firm is the Women’s Equity Lab, which is Canada’s first venture capital firm focused specifically on investing in women-led businesses. They provide equity financing, mentorship, and community to female founders who are building innovative and scalable companies.
But let’s say you’re not quite ready for venture capital just yet. Another option is angel investing. Angel investors are typically wealthy individuals who provide funding to early-stage businesses in exchange for equity in the company.
If you’re interested in this route, check out the Women’s Angel Investor Network. They provide funding to early-stage businesses and are all about increasing the number of women-led businesses in Canada.
Of course, funding isn’t the only thing you need to start and grow a successful business. That’s where resources come in. The Women’s Enterprise Centre is a great resource for women entrepreneurs in Canada.
They have regional offices that provide business advisory services, funding programs, and training programs to help you get your business off the ground. They also offer mentorship, networking, and coaching services to help you scale your business and overcome any challenges you may face.
If you’re looking for a national organization, the National Association of Women Business Owners is a great place to start.
They offer educational programs, networking opportunities, and advocacy services for women entrepreneurs across Canada. They also organize events, webinars, and conferences to connect you with like-minded women who are on the same journey as you.
For women seeking community, networking, courses and other learning opportunities, Canadian Small Business Women helps women business owners find the necessary resources to take their business from the planning stages to reality.
Small Business Funding for Canadian Black Women
As a Black woman myself, I know firsthand the challenges we face when it comes to starting and growing a business.
The good news is that there are several programs and initiatives that are specifically designed to support Black women entrepreneurs in Canada.
Here are some of the top ones you should know about:
1. Black Entrepreneurship Loan Fund – This program is a partnership between FACE, the Government of Canada, the BDC and private sector financial institutions to provide loans of up to $250,000 to support Black business owners and entrepreneurs across Canada.
FACE also supports entrepreneurs with tools and resources to help them with the process of applying for a loan, including templates, a podcast, a knowledge centre and master classes.
2. Black Entrepreneurship Program – This program, also launched by the Canadian government in 2020, provides funding, mentorship, and support to Black entrepreneurs and business owners.
The program includes several initiatives, such as the Black Entrepreneurship Knowledge Hub, the Black Entrepreneurship Loan Fund, and the Black Entrepreneurship Ecosystem Fund.
3. Futurpreneur Canada – The Black Entrepreneur Startup Program supports Black entrepreneurs aged 18-39 with startup loan financing and up to two years of mentorship, plus access to resources and networking opportunities with fellow entrepreneurs across Canada.
4. Community Futures – This organization provides loans, training, and advisory services to entrepreneurs in rural and remote communities across Canada. While Community Futures doesn’t have a specific program for Black women entrepreneurs, they do commit to diversity and inclusion.
5. BDC Capital – This organization provides financing and advisory services to entrepreneurs and businesses in Canada.
While BDC Capital doesn’t have a specific program for Black women entrepreneurs, they do commit to diversity and inclusion and are actively looking for ways to support underrepresented groups.
How to Apply for Funding
Now that you know some of the funding options that are available to you, let’s talk about how to apply for funding. Here are some tips to keep in mind:
1. Start with a solid business plan – Before you apply for funding, make sure you have a clear and comprehensive business plan. This should include things like your business model, target market, marketing strategy, financial projections, and more.
2. Research the funding options – Take the time to research the funding options that are available to you, and make sure you understand the eligibility criteria, application process, and timelines for each program.
3. Get your financials in order – Make sure you have all of the financial documents and information you need to apply for funding, such as your business tax returns, financial statements, and credit reports.
Some programs may require you to submit a formal application, while others may require you to pitch your idea in person or online.
Some programs may also require you to have a certain credit score or collateral, while others may be more lenient. It’s important to do your research and to understand the requirements and timelines of each program you’re interested in.
In case you’re experiencing a sense of being overwhelmed or confused about how to proceed, don’t fret. There are organizations and consultants out there who can help you navigate through the funding landscape and prepare a winning application.
Throughout the process, they can also offer you constructive criticism, guidance, and encouragement.
In short, small business funding for women in Canada is not only possible but also accessible. Whether you’re looking for a grant, a loan, equity financing, or angel investing, there are options.
Just be persistent and resilient. Applying for funding can be a long and challenging process, but don’t give up. Stay persistent, stay positive, and keep pushing forward.