BDC and Woveo Launch $10 Million Microlending Program to Expand Access to Financing for Canadian Small Businesses

This new program will provide loans of up to $25,000, helping Canadian entrepreneurs establish credit histories and access capital faster.

CALGARY, AB, Oct. 8, 2026 /CNW/ -- Woveo, an AI-powered fintech platform that helps financial institutions and community organizations expand access to affordable small-business credit, today announced a $10 million lending initiative with the Business Development Bank of Canada (BDC).

Through this microlending program, entrepreneurs across Canada (excluding Quebec) who have traditionally been underserved by conventional financing models can access loans of up to $25,000.

By combining accessible financing with personalized support and guidance through trusted community organizations, the program helps entrepreneurs build financing confidence, strengthen their credit profiles, grow their businesses, and ultimately progress toward larger financing from mainstream financial institutions as their financial profiles mature.

The program supports BDC's ambition to expand access to financing and business support through its Community Banking initiative, which partners with trusted community and ecosystem partners.

A Widening Gap in Small Business Financing

According to the Organisation for Economic Co-operation and Development (OECD)'s Financing SMEs and Entrepreneurs 2026 report, the share of new Canadian business lending directed to small and medium-sized businesses declined from 16% in 2011 to just 5.8% in 2024, highlighting the growing difficulty smaller businesses face when seeking financing.

Research into financing programs that combine capital with business support also demonstrates the potential value of this approach. Assisted SMEs have been associated with survival rates of approximately 65%, compared with 46% for non-assisted SMEs. Research also shows that entrepreneurs who gain access to financing can more than double their average annual sales growth and nearly triple their annual job creation.

Small and medium-sized businesses remain a critical part of Canada's economy, but many entrepreneurs struggle to access smaller amounts of capital. Conventional underwriting can be costly and time-consuming relative to the size of a microloan, making small-dollar business financing difficult for traditional lenders to provide efficiently.

Combining Technology with Community Support

Woveo's model combines proven community-based microlending practices with modern financial technology. By integrating real-time cash-flow information, credit bureau data, business-performance signals, and social collateral into its AI-assisted underwriting process, Woveo creates a more complete picture of an entrepreneur's creditworthiness while leveraging trusted local relationships and business support to deliver faster, more inclusive access to financing.

"Small-business owners in Canada do not lack ambition or ability. Too often, they lack access," said Jonah Chininga, Co-Founder and CEO of Woveo. "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. By combining cash-flow intelligence, credit data, AI-assisted underwriting and community accountability, we can make small-business lending more accessible and economically viable. Our initiative with BDC will help more entrepreneurs build sustainable businesses and create a pathway into the mainstream financial system."

Woveo's approach builds on its experience facilitating more than 1,200 loans through its community-based lending programs, which have achieved a 98% repayment rate.

"Every successful entrepreneur starts somewhere, yet access to a first loan remains the most difficult loan to get," said Adil Hassam, Vice President, Community Banking at BDC. "By partnering with an innovative fintech like Woveo, we are leveraging technology to simplify and accelerate access to financing. By creating a faster and more efficient lending experience, BDC is making it easier for entrepreneurs to get the financing and support that they need to get their business started on the right foot."

Learn More

Entrepreneurs interested in the program can learn more and check their eligibility at woveo.com/bdc.

About Woveo

Woveo is an AI-powered small-business credit infrastructure platform that helps financial institutions and community organizations originate and service microloans for underserved entrepreneurs. Woveo enables entrepreneurs to access capital, establish credit histories and strengthen their financial profiles as they grow.

Woveo is an award-winning fintech recognized by the World Summit Awards for financial inclusion and the Digital Commerce Calgary Fintech Award. Learn more at woveo.com.

About BDC, Canada's bank for small- and medium-sized business owners

BDC focuses on small- and medium-sized business owners, providing financing, investment, and advice. As Canada's development bank, BDC supports entrepreneurs who don't fit the traditional mould, working with a network of partners to develop underserved markets and unlock economic potential.

BDC's mission is building strong, resilient businesses that drive Canada's economic growth. BDC is a perennial Canada's Top 100 Employer and B Corp certified. Learn more at bdc.ca or connect with us on social media.

SOURCE Woveo

Media Contact: Anita Lee, [email protected]