Business Loans for Women in Ontario: Best Loans + Tips for Applying -

Looking for women business loans in Ontario? You’re in the right place!

This guide covers: what business loans can pay for; major lenders (from banks and credit unions to community and non-profit options); what lenders look for; and other funding options that are worth a look.

Key Takeaways:

Loans can cover working capital, equipment, leaseholds, tech, real estate, and more
Know your options: financing is offered by banks and credit unions, community lenders, non-profit microlenders, and sector-focused federal lenders (e.g. agriculture)
Lenders care about the 4Cs: Credit, Cash-flow, Collateral, and Character
Reduce cost by stacking: combine loans with grants, subsidies, and tax credits

Related Articles for Women Entrepreneurs:

– Female Business Grants Ontario: Current Grants + Tips for Applying
– Equity Investment for Women Entrepreneurs in Ontario: Beginner’s Guide
– Women Entrepreneurs in Ontario: Directory of Funding & Support Sources

Business Loans Vs Personal Loans for Women

In Ontario, women entrepreneurs can finance a company with either a business loan or a personal loan. The right choice depends on purpose, size, risk, and how you want the debt to appear (on the business vs. on you). Below is a clear, point-by-point comparison.

Business vs. Personal Loans: Key Differences

Who’s on the hook: A business loan is in the company’s name (although startup owners sometimes have to sign a personal guarantee). A personal loan is in your name—you alone are responsible.
What lenders check: For business loans, they look at your company’s sales, profit, and cash flow and your personal credit. For personal loans, it’s mostly your personal credit and income.
Paperwork: Business loans need more: financials, a simple budget showing how you’ll spend the money, and a basic payback plan. Personal loans usually need ID and proof of income.
Collateral/security: Business lenders often want something as backup—equipment, receivables, or property—and sometimes your personal guarantee to pay back the loan if your business can’t. Personal loans are often unsecured (no asset pledged), though some can be backed by a car or savings.
Interest rate: Business loan interest rates depend on how strong the business is and what backup you offer. Personal loan rates depend on your credit score—usually higher than secured business loans but lower than credit cards.

Bottom line:

Business startup loans are in your company’s name for business uses and approved on business results (income, assets) plus your personal credit (sometimes requiring a personal guarantee).

Personal loans are in your personal name for general use, approved mainly on your personal credit, and are typically smaller, shorter-term, and unsecured.

Grants vs. Loans for Women-Led Startups in Ontario

Many women entrepreneurs in Ontario dream about landing a big grant for their startup, but it’s important to weigh grants against another common source of funding: startup loans.

Grants can give you a boost without repayment, but they’re competitive, often slow to secure, and usually smaller than what you can borrow. Loans, on the other hand, can deliver quick, flexible capital—but they come with interest payments and the responsibility to pay them back. The list below highlights the main benefits of each option:

Benefits of Startup Loans

Faster access to cash: lenders can approve quickly if you meet their requirements.
Larger amounts possible: you may borrow more than most grants offer.
Flexible use: funds can often cover a wide range of expenses (equipment, marketing, hiring, etc.).
Build credit history: paying back a loan on time helps establish business credit.
Predictable timeline: you know when and how much funding you’ll receive

Benefits of Business Grants

Non-repayable — grant money does not have to be paid back.
Lower financial risk — no debt or interest payments hanging over you.
Validation effect — winning a grant can boost credibility with investors and lenders.
Stackable — grants can often be combined with other funding (loans, subsidies, tax credits).
Specialized support — many grants target specific groups (e.g. youth, women, Indigenous entrepreneurs) or sectors, giving startups extra help.

👉 Rule of thumb: Loans give you speed and scale but add repayment obligations; grants are “free money” but more competitive and slower to secure.

What Can a Business Loan Be Used For?

Loan Use	Example
Start-up Costs	Business registration, licenses
Equipment	Manufacturing tools, office setup
Marketing	Social media ads, print materials
Operations	Rent, salaries, utilities
Expansion	Opening a second store, new markets

Some women entrepreneurs also put loan funds toward training or professional development. This could include courses, certifications, or mentorship programs that help you strengthen your business skills.

Types of Business Loans & Credit for Women Founders

There are dozens of types of financing (loan and credit programs and products) available to entrepreneurs in Ontario, including women entrepreneurs. We’ve grouped those types of financing into five categories. We briefly describe each category and related types below:

Government Loan & Credit Programs

These are loans and credit supports that come from government-backed sources. The aim is to make borrowing easier and safer for small businesses by reducing some of the risk for lenders.

Government financing often has fair interest rates and may include extra guidance or mentorship, which can be especially valuable for women founders. The trade-off is more paperwork and a slower approval process, but for many new or growing businesses it’s the most supportive path to affordable credit.

Five Types of Government Loan and Credit Programs:

Direct Loans: money lent to your business by a government-backed lender; usually comes with guidance and clear reporting.
Loan Guarantees: the government shares the risk with your lender so the bank is more willing to approve you.
Micro Loans: small, starter-sized loans with simpler applications—good for early, low-dollar needs.
Community-Based Loans: relationship-driven loans delivered locally, often paired with coaching or mentorship.
Credit Insurance: protects a lender (or your receivables) against non-payment, which can help unlock or increase credit.

Government loan & credit programs are best for: businesses that want affordable credit and are willing to provide a clear plan and a bit more documentation.

Women entrepreneurs in Ontario can rely on a number of federal and local government funding organizations:

Government Lenders Supporting Ontario Women’s Business

Lender	What They Do	Sample Women’s Program
BDC (Business Development Bank of Canada	Term loans and working capital specifically for entrepreneurs, including women-led businesses.	BDC Inclusive Entrepreneurship Loan
EDC (Export Development Bank of Canada)	Supports businesses engaged in international trade. Provide export financing and insurance to reduce risk.	EDC Women in Trade Program
FCC (Farm Credit Canada)	Supports agriculture and agri-food businesses, including farms, food processing companies, and agri-tech startups.	FCC Women Entrepreneur Loan
Small Business Enterprise Centres	Offices in 54 Ontario municipalities. They provide business advice, training, and often small loans.	She Means Business Success Pod
Community Futures Development Corporations	Offices in 60 rural areas of Ontario. They provide loans, business counselling, and community economic development support.	Northern Ontario Women (NOW) Program

Bank and Credit Union Loan & Credit Products

Banks and credit unions are the most common place entrepreneurs go for financing. They provide the classic business loan products—everything from lump-sum loans to revolving lines of credit, business credit cards, and commercial mortgages.

Bank and credit union loans usually come with the lowest interest rates, but they can also ask the toughest questions: they’ll want to see proof of steady income, solid financial records, and sometimes a personal guarantee.

Five Types of Bank/Credit Union Loan & Credit Products:

Direct (Term) Loans: a one-time lump sum paid back over time—best for equipment, renovations, or acquisitions.
Lines of Credit: revolving working capital you draw and repay as needed to smooth cash flow.
Business Credit Cards: quick access to small, short-term credit with expense tracking and rewards.
Commercial Mortgages: long-term financing to buy or build your business premises.
Trade Finance: tools that support buying/selling across borders—think letters of credit and short-term import/export credit.

Bank and credit union loan & credit products are best for: businesses that are established, want competitive rates, and can show steady income and strong credit.

Banks & Credit Unions Supporting Ontario Women’s Business

Lender	What They Do	Sample Women’s Program
BMO	BMO provides women entrepreneurs with focused banking support, networking and coaching programs, and flexible lending to scale operations.	BMO for Women
CIBC	CIBC doesn’t have a dedicated resource for women entrepreneurs, but supports entrepreneurs generally via their business banking services.	CIBC Business Banking
RBC	RBC supports women entrepreneurs with dedicated advisors, educational events, and financing options to help start, grow, and manage their businesses.	RBC Women in Business
Scotiabank	Scotiabank backs women-led businesses through specialized relationship teams, mentorship and skills programming, and funding options across growth stages.	Scotiabank Women Initiative
TD	TD offers women founders access to business bankers, learning resources, and tailored credit solutions designed to build capacity and improve cash flow.	TD Women in Enterprise
Alterna Savings	Alterna provides microloans and flexible business financing—often partnering with local organizations and the government—to help women entrepreneurs access capital and build financial independence	Alterna Community Microfinance Loan
Meridian Credit Union	Meridian offers inclusive business financing—like accelerator loans aimed at diverse owners (including women)—alongside local support, banking advice, and community-focused tools.	Meridian Business Accelerator Loan

Alternative Financing

Alternative financing covers a wide mix of non-bank sources of credit. These lenders and platforms are often quicker and more flexible, making them attractive to new businesses or founders who don’t fit the traditional bank model. The cost of borrowing is usually higher, but approval can be much faster, and some lenders place more weight on your character or community support than on credit history alone.

Five Types of Alternative Financing:

Crowdfunding (Debt/Loans): raise a lot of small loans from many backers on a platform and repay over time. The main crowdfunding platforms in Canada are Kickstarter, Indiegogo, Ulule, and Crowdfundr.
Peer-to-Peer Loans: individual investors lend to your business through an online marketplace. The main online peer-to-peer loan service in Canada is GoPeer.
Non-Profit & Community Loans: small loans from mission-driven groups that look closely at character and community impact.
Private Loans: custom loans from private lenders; fast decisions, higher rates, flexible structures.
Community Bonds: interest-bearing bonds your supporters buy to fund a specific project, repaid over a set term.

Alternative financing is best for: businesses that need money quickly, have been turned down by a bank, or want to tap into community or investor support.

Non-Profit & Community Lenders Supporting Ontario Women’s Business

Lender	Type of Organization	What They Do	Sample Program
PARO Centre for Women’s Enterprise	Non-Profit	PARO Centre for Women’s Enterprise supports women entrepreneurs with mentorship, networking, and access to funding.	Prosper Peer Lending Circles
Nventure	Non-Profit	Nventure provides flexible, low-cost loans to women-owned businesses across Canada, with a streamlined application process and guidance.	DELIA Loan Fund
Access Community Capital Fund	Non-Profit	AccessCCF helps women entrepreneurs through training and mentorship plus real-world market access opportunities.	Micro Loan
Rise Asset Development	Non-Profit	Rise Asset Development supports women+ founders with free training and group mentoring and complementary low-interest loans with mentorship.	Small Business Lending
Indigenous Financial Institutions	Community-Based	Indigenous Financial Institutions (IFIs) support Indigenous women entrepreneurs by offering culturally grounded financing, training, and mentorship programs to start and grow businesses while overcoming barriers to capital.	Women Entrepreneurship Loan Fund

Asset-Backed Financing

Asset-backed financing is all about borrowing against the things your business already owns—or will soon own. Instead of relying only on your cash flow or credit score, these loans are secured by assets like equipment, inventory, invoices, or even property.

Five Types of Asset-Backed Financing:

Equipment Financing: loans or leases tied to the gear or vehicles you’re buying; payments match the asset’s life. Reputable equipment financers include RBC, BDC, CWB National Leasing, and Meridian OneCap.
Accounts Receivable Financing and Factoring (aka Invoice Financing and Factoring): borrow against outstanding invoices (or sell your invoices) to speed up cash flow. Popular AR financing firms include FundThrough, Accord Financial, and Express Business Funding.
Inventory Financing: use inventory as collateral to fund purchasing and seasonal stock builds. Top inventory financing firms include Accord Financial and Avon River Ventures.
Purchase Order (PO) Financing: get funds to fulfill a confirmed order before you get paid by the customer. Popular PO financing products are offered by BDC, Business Factors, and Liquid Capital.

Asset-backed financing is best for: businesses or founders that have valuable business assets and want to turn them into working cash without selling them outright.

Revenue-Based Financing

Revenue-based financing flips the usual loan structure on its head. Instead of fixed monthly payments, you repay a set percentage of your sales until the lender recoups the original amount plus a fee.

Revenue-based financing is popular with startups that have strong but uneven revenues—like e-commerce, tech, or seasonal businesses—because the payments rise and fall with income. It’s more flexible than a bank loan, but often more expensive overall.

Four Types of Revenue-Based Financing:

Merchant Cash Advance: receive a lump sum now and repay through a small slice of daily card sales. Top MCA companies in Canada include Merchant Growth, Journey Capital, and 2M7.
Tax Credit Financing: advance funding against expected tax credits or refunds so you don’t have to wait. Check out online tax credit financing providers like Easly and Venbridge, or a specialty lender like R&D Capital.
Supply Chain Financing: early payments to you (or your suppliers) based on approved invoices, repaid when customers pay.
Royalty Financing: funding today in exchange for a small percentage of future revenue until an agreed total is repaid.

Revenue-based financing is best for: businesses that have growing sales, want flexible payments, and prefer not to give away ownership in the company.

Top 14 Business Loans for Women in Ontario

Tip: Combine these women’s business loans with female entrepreneur grants, and also explore equity investment for women.

WEOC National Loan Program

WEOC provides flexible loans up to $50k for women and non-binary entrepreneurs, delivered through WEOC’s partner network for uses from working capital to equipment.

BDC Inclusive Entrepreneurship Loan

BDC’s Inclusive loan program provides up to $350,000 for businesses 51%+ owned and led by women, Indigenous or Black entrepreneurs, with no application/annual fees and up to 24 months of postponed principal.

FCC Women Entrepreneur Loan

FCC’s loan for women in agriculture/food offers customized financing with a one-time processing fee waiver up to $1,000 and advisory support.

NADF Indigenous Women In Business

In Northern Ontario, NADF delivers financing and supports for Indigenous women; NADF’s broader loan programs can finance up to $500,000

Alterna Community Microfinance Loan

Alterna offers Ontario microloans $5,000–$25,000, 5-year terms at roughly prime +2% to +6%, plus a $100 application fee.

Access Community Capital Loan Fund

AccessCCF offers character-based microloans up to $5,000 (and up to $10,000 after successful repayment) at about prime +1.25% with up to 3-year terms.

PARO Prosper Peer Lending Circles

PARO Prosper Peer Lending Circles are small groups of like-minded women who meet regularly to share their experiences and expand their individual networks of contacts, offering loans up to $5,000.

Nventure DELIA

DELIA provides microloans up to $50k prioritizing diverse, under-served women entrepreneurs.

Coralus Women Entrepreneurship Loan Fund

Coralus provides selected women & non-binary-led Ventures receive unsecured 0% loans (typically 5-year term) plus deep community support.

Indigenous Women Entrepreneurship Loan Fund

NACCA provides microloans up to $50,000 delivered via Indigenous Financial Institutions to help Indigenous women start or grow a business.

Futurpreneur

Not women-targeted, but for ages 18–39 Futurpreneur offers collateral-free startup loans up to $75,000 ($25k from Futurpreneur + up to $50k from BDC) plus up to 2 years of mentorship.

Meridian Business Accelerator Loan

Ontario-based businesses can access $25,000–$500,000 working-capital term loans through Meridian’s Accelerator (under BDC’s Business Accelerator Loan Program)

Rise Small Business Lending Program

RISE offers entrepreneurs with mental health or addiction challenges low-interest loans up to $10,000 (often prime +2.5%) with ~3-year terms, no collateral, and “wraparound” supports.

Canada Small Business Financing Program (CSBFP)

While not specifically for women, the CSBFP is an excellent loan guarantee program that every woman entrepreneur should consider. The loan is provided by the big banks and credit unions, but is guaranteed up to 85% by the federal government.

What Lenders Look For (4Cs Checklist)

1. Character: Your track record – are you reliable, experienced, and have paid your bills on time?
2. Capacity: Does your business have the stable cashflow to cover the loan payments?
3. Capital: How much of your own money have you invested (your “skin in the game”)?
4. Collateral: What assets (business or personal) can back up the loan if you can’t repay?

* But: some lenders (especially community lenders and credit unions) focus more on your character and commitment—so even if you have bad credit, they may still give you a chance.

How to Apply for a Women’s Business Loan: 10 Steps

Complete this sentence: “I’m borrowing [dollar amount] to do [activity] by [date], which will increase revenue by [dollar amount] or cut costs by [dollar amount].”

For example: “I’m borrowing $40,000 to buy new commercial kitchen equipment by March, which will increase revenue by $10,000 a month through added catering contracts.”

Pull your personal credit reports, fix errors, lower utilization, and line up a guarantor if necessary; check your business credit if it exists.

Choose between government-backed lenders, banks/credit unions, asset-backed financing, or alternative/revenue-based lenders depending on your business stage and needs.

Prepare month-by-month projections showing how loan funds will be used and repaid, and include a downside case to prove you can still cover payments.

Write a short plan (10–12 pages max) that clearly shows your market, strategy, team, and how the loan will produce growth, plus a one-page risk/mitigation outline.

Identify what assets you can pledge (equipment, property, receivables, inventory) and note existing liens; be ready for a personal guarantee.

Collect IDs, registrations, tax returns, bank statements, financials, cash-flow forecast, use-of-funds budget, and supporting contracts or quotes.

Talk to multiple lenders to compare total loan terms (rate, term, fees, security, flexibility) and track differences in a simple comparison sheet.

Be ready to explain your numbers, assumptions, and plan without reading off the page—practice so you can answer questions confidently and naturally.

Present your one-sentence ask, use-of-funds, and payback story backed by your forecast and proof (quotes, orders, contracts), then show why you’re the right person to deliver.

Increase Your Business Funding with “Stacking”

There are dozens of funding types available to women entrepreneurs in Canada (in addition to loans) – including grants, subsidies, rebates, tax credits, entrepreneurship programs and more.

Smart female founders don’t stop at a loan – they “stack” funding. Click here to learn the 42 types of funding available to Canadian entrepreneurs and which ones to use for your business.

How to Stack Funding: Get More Money by Combining Loans + Other Types of Funding

You can strengthen your financial position by pairing a business loan with other funding options that don’t add to your debt load. This approach can help you reduce repayment pressure, improve cash flow, and access resources that loans alone may not provide.

Women’s Business Grants

Grants for women-led businesses give you funding you don’t have to repay, making them a valuable addition to your financing mix. In Ontario, you can find grants targeted to women entrepreneurs through federal, provincial, and local programs.

Some grants focus on specific industries like technology, manufacturing, or agriculture. Others support business development, export growth, or innovation.

Women’s Equity Financing

Equity financing brings in capital from investors in exchange for partial ownership of your business. This option doesn’t require repayment, but it does mean sharing decision-making and profits.

You can seek funding from angel investors, venture capital firms, or specialized funds that focus on women-led businesses in Ontario.

Equity investors often bring more than money — they may offer mentorship, industry connections, and strategic advice. This can be especially valuable if you’re scaling quickly or entering new markets.

Before pursuing equity financing, decide how much control you’re willing to give up. Prepare a strong pitch that highlights your growth potential, competitive advantage, and financial projections. You can explore networks such as SheEO or the Women’s Enterprise Organizations of Canada to find aligned investors.

Subsidies

Subsidies can lower your operating costs by covering part of your expenses for a set period. They often apply to wages, training, or adopting new technology.

For example, wage subsidies can help you hire and train employees while reducing payroll costs. Training subsidies may cover certification courses or skills development for your team.

Some technology adoption subsidies offset the cost of software, equipment, or process upgrades. You can combine these with loan funds to stretch your budget further..

Tax Credits

Tax credits reduce the amount of tax you owe, freeing up cash for reinvestment. They can be refundable or non-refundable, depending on the program.

In Ontario, you may qualify for credits such as the Scientific Research and Experimental Development (SR&ED) tax credit or the Ontario Innovation Tax Credit. These reward activities like product development, process improvement, or R&D.