$6 million boost to loan program to aid female entrepreneurs

Female entrepreneurs could benefit from more accessible loans thanks to a new $6 million Alberta business support program.

Status of Women Associate Minister Whitney Issik said Thursday that unsecured loans of up to $75,000 will be easier to obtain than traditional bank loans.

Women aiming to start or grow their business can apply for the cash for things like paying staff and purchasing equipment and inventory.

“Supporting women entrepreneurs is a crucial step to building a strong economic future in this province,” said Issik.

Jobs, Economy and Innovation Minister Doug Schweitzer said too often women entrepreneurs seeking early-stage loans are rejected by banks.

“We want to make sure that we start saying `yes' to more women entrepreneurs in our province,” said Schweitzer.

Issik said women often face barriers to getting loans because of a lack of assets to use as collateral.

The loans will have an interest rate of prime, which is currently 3.2 per cent, plus two, although there is the possibility of a quarter of the total being forgiven if 75 per cent is paid within five years. Issik said the repaid loans will be recirculated to new applicants.

Alberta Women Entrepreneurs and Community Futures Network of Alberta will administer the loans, with each organization getting $3 million through the provincial Women's Economic Recovery Capital Growth Initiative.

Phyllis Maki, executive director of Community Futures Network of Alberta, said they've aimed to make the application process smooth, with a simple application form.