Loan program to help women in business navigate virus era

A new program launched Monday by Vancity and the Women’s Enterprise Centre will provide as much as $15 million in loans and support for women entrepreneurs hit hard by the pandemic.

The organizations behind the program note women are disproportionately feeling the effects of the COVID-19 outbreak, and they hope the loan program fills some of the gaps.

“Since the start of the pandemic, we’ve been monitoring the economic impact of COVID-19 and have listened to our members and community partners. As the economy reopens and the effects become clearer, we’ve identified a gap in support for women entrepreneurs,” said Vancity chief executive Tamara Vrooman. “Due to this imbalanced impact, we have designed this program with gender inclusivity at the fore and we’ll continue to monitor the effects of the pandemic on others as restrictions ease.”

The Unity Women Entrepreneurs Program will provide loans of as much as $150,000, support of women business owners throughout the province, online education and resources on financial management, leadership and marketing and as much as six months of mentorship through the Enterprise Centre.

Tying the loans to mentors and a support network is key, said Jill Earthy, interim chief executive of the centre. “We want to provide additional resources through funding, but it’s so important to have the wrap-around services of mentorship and community support and education to help entrepreneurs navigate these waters.”

Earthy said while women make up 28 per cent of all entrepreneurs in Canada, less than three per cent of all venture-capital funding went to women last year. Women entrepreneurs also accessed only 14 per cent of available loans. She also noted that going into the pandemic, 24 per cent of women entrepreneurs were likely to have children under 18 at home.

According to Statistics Canada, 73 per cent of women-owned businesses have experienced a high negative impact on the demand for products or services in their industry. By comparison, 64 per cent of all businesses experienced a high negative impact.

Those numbers are a problem when childcare and the fact most women-owned businesses are selffinanced are taken into account. “We’re finding gaps in funding, investment and leadership,” said

Earthy. “The concern at this point is that those gaps will widen.”

No payment or interest will be charged on the five-year loans for the first six months, after which payments will be interest-free for six months. After a year, the payments will be subject to interest of prime plus three per cent.

“With invaluable support being offered from Women’s Enterprise Centre, we hope the program will provide the capacity-building required to support women in continuing to operate their businesses,” said Vrooman, noting women make up about half of Canada’s workforce. “An equitable economic recovery is impossible without women going back to work, and women-owned businesses are a huge part of this.”

The program is open to all women-owned businesses in B.C. that have been in business for two years ore more. It is up to the business owner what they use the loan for, be it operations, marketing, expansion or just keeping the lights on.

Earthy said they are hoping the funds will serve as a bridge, while the support network can help business owners navigate the many aid and loan packages available. “We step in and help them understand their options,” said Earthy, whose non-profit organization has been offering development loans and guidance for 25 years.

Vancity has also been helping individuals and businesses during the pandemic by waiving some fees, reducing interest rates on credit cards and offering a sixmonth loan deferral program.