Joint Loan Program Eligibility Criteria: Community Microfinance and BDC
Eligible Groups
- Black entrepreneurs – Applicants must self-identify as being of African or Caribbean heritage and must have at least 51% ownership interest in the business
- Social (for profit) entrepreneurs – engaged in a business that uses a creative and innovative approach to solve economic, social and environmental issues.
- Women entrepreneurs – must have at least 51% ownership interest in the business
Alterna Community Microfinance Loan Terms and Rates
- 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
* Loans from Alterna Savings and BDC may be up to $25,000 each. This amount will be determined on a case by case basis and is not guaranteed.
For more information contact microfinance@alterna.ca