WeBC — Business Loans for Youth
Highlights
This program is designed for young women business owners like you. It offers an unsecured joint loan of up to $70,000 with no security required. This means you can access the funds you need without putting up collateral. The loan comes with flexible repayment options and up to six months of interest-only payments, making it easier to manage your cash flow.
What You Get:
- Up to $70,000 in financing
- Matched interest rates with Futurpreneur Canada
- No penalty for early repayment
- Free, ongoing business advice from a personal Business Advisor
- Mentoring and free business skills training
This loan is better than others because it includes complimentary professional support. You will be matched with a personal Business Advisor who will guide you through any challenges. This support can be invaluable in helping you grow and sustain your business. Plus, the application process is straightforward, making it easier for you to qualify and get started.
Financing Details
Type of Financing: Loan
Loan Amount: Up to $70,000
Repayment Terms:
- Interest rates match those of Futurpreneur Canada.
- Flexible repayment options.
- Up to six months of interest-only payments.
- No penalty for early repayment.
Eligible Expenses:
- Starting a business.
- Buying a business.
- Expanding a business.
Ineligible Expenses:
- Projects in the pre-start-up phase.
- Businesses without operational control over important aspects.
- Multi-tiered marketing projects.
- Speculative investments.
- Refinancing existing debt from another lender.
- Projects requiring funding above $70,000 without secured additional funding.
Fees:
- One-time loan administration fee of 1% before disbursing the loan.
- No additional fees for early repayment.
Qualifications
- Must be between the ages of 19 and 39.
- Must be a woman (or women) who owns and controls at least 51% of a business.
- Business must be registered and located in British Columbia.
- Must be a Canadian citizen or permanent resident.
- Must reside in British Columbia.
- Must have a business plan.
- Must provide market research confirming demand for the product/service.
- Must provide a monthly cash flow forecast for the next two years of operation.
- If purchasing a business, must provide historic financial statements and a copy of the proposed purchase agreement.
- Must have a credit history without outstanding bankruptcy or judgment.
- Must show personal equity investment in the business, with a minimum equity requirement of 10% of the loan amount.
Must have the skills to operate and manage a business successfully, which can be gained through work experience, education, volunteer positions, or other personal background.
Disqualifications:
- Projects in the pre-start-up phase requiring seed or early-stage capital.
- Businesses where the owner does not have operational control over important aspects of the business (e.g., some franchises).
- Businesses where the majority of gross revenues do not come from direct sales of the business’s products or services (e.g., multi-tiered marketing projects).
- Investments considered speculative.
- Refinancing of existing debt from another lender.
- Loans greater than $70,000 ($50,000 from WeBC plus $20,000 from Futurpreneur Canada).
- Projects requiring funding above $70,000 without securing the additional funding.
Description
This program offers you a chance to secure a loan of up to $70,000 without needing to provide any security. This can be a great opportunity to start, buy, or grow your business. The loan comes with flexible repayment options, including up to six months where you only pay interest.
Key benefits include:
- No security required for the loan
- Flexible repayment options with up to six months interest-only payments
- No penalty for early repayment
- Free ongoing business advice from a personal Business Advisor
- Mentoring and business skills training at no extra cost
There is a one-time loan administration fee of 1% before the loan is disbursed. This program is designed to support your business with both financial resources and professional guidance, ensuring you have the tools and advice needed to succeed.
Program Steps
Register for a Business Loan Info Session: Sign up for one of the weekly phone-in sessions held every Tuesday at noon (PST). During this session, you will learn about the lending criteria, get your questions answered, and receive a resource package.
Prepare Your Business Plan: Ensure you have a comprehensive business plan that includes:
- Market research confirming demand for your product/service.
- Monthly cash flow forecast for the next two years.
- Historic financial statements of the business (if purchasing an existing business).
- Copy of the proposed purchase agreement (if applicable).
Check Your Credit History: Understand your credit rating. WeBC will review your credit history as part of the application process. Ensure there are no outstanding bankruptcies or judgments.
Show Cash/Equity Contribution: Demonstrate a personal equity investment in your business. The minimum equity requirement is 10% of the loan amount. This can include cash or other assets like equipment or inventory.
Gather Required Documentation: Collect all necessary documents for the loan application, including:
- Business Plan
- Market Research
- Monthly Cash Flow Forecast
- Historic Financial Statements (if applicable)
- Proposed Purchase Agreement (if applicable)
- Credit History Report
- Proof of Equity Contribution
Attend the Info Session: Participate in the scheduled info session to get detailed instructions on how to apply and to confirm your eligibility.
Complete the Loan Application: After attending the info session, fill out the loan application form provided by WeBC. Ensure all required documents are attached.
Submit the Application: Submit your completed application along with all required documentation to WeBC for review.
Work with a Business Advisor: After submission, a Business Advisor will be assigned to you. They will help you through the application process and provide ongoing business advice.
Wait for Approval: The review process takes approximately four weeks. The completeness and complexity of your plan will affect the timeline.
Finalize Loan Terms: Upon approval, discuss the final loan terms, including interest rates, repayment schedule, and any associated fees.
Receive Loan Funds: Once everything is agreed upon, the loan funds will be disbursed, allowing you to proceed with your business plans.