Loan Program

Joint Loan Program Eligibility Criteria: Community Microfinance Program and BDC

This program supports:

• Black Entrepreneurs: One or more of the Applicants must self-identify as being of African or Caribbean heritage and must have at least a 51% ownership interest in the business.
• Entrepreneurs with Disabilities: One or more of the Applicants, having at least a 51% ownership interest in the business, must self-identify as individual whose daily activities are limited as a result of an impairment or difficulty with particular tasks. The only exception to this is for developmental disabilities where a person is considered to be disabled if the respondent has been diagnosed with this condition.
• Racialized Entrepreneurs: One or more of the Applicants must self-identify as being of South Asian, Chinese, Filipino, Arab, Latin American, Southeast Asian, West Asian, Korean or Japanese heritage and must have at least a 51% ownership interest in the business.
• Social Entrepreneurs: Together, the Applicants must be engaged in a business that use a creative and innovative approach to solve economic, social and environmental issues.
• Women Entrepreneur: One or more of the Applicants must be a woman and must have at least a 51% ownership interest in the business.
• Young Entrepreneurs: One or more of the Applicants must be between the ages of 18 to 39 and must have at least a 51% ownership interest in the business.
• 2SLGBTQI+ Entrepreneurs: One or more of the Applicants, having at least a 51% ownership interest in the business, must self-identify as being Two-Spirit, lesbian, gay, bisexual, transgender, queer or question, intersex or part of sexual and gender diverse communities who use additional terminologies.
  

• Between $5,000-$25,000
• 5-year repayment period
• Open to Ontario residents
• Interest rate ranges from Prime +2% to Prime + 6%
• $100 application processing fee (payable upon loan disbursement)
• Business must be revenue generating for at least 12 months before application
• Personal income of $50,000 or less
• Sole proprietorship, partnership or incorporated business
• Applications are subject to credit approvals and eligibility criteria. Some restrictions may apply

BDC Loan Terms and Rates

• Applicants must be approved for a loan through the Alterna Community Microfinance Program
• Between $5,000-$25,000 – the loan amount will be equal to the loan from Alterna
• 5-year repayment period (interest-only repayment in the first year) $50 application processing fee (deducted from the initial loan disbursement)
• Interest rate: BDC Floating Base Rate + 1.65%
• Loan applicants must not be BDC borrowers at the time of application
• Applications are subject to BDC approval and eligibility criteria. Some restrictions may apply