Loans FAQ

Loans can be used for a variety of expenses, some of which may not be covered by other lending institutions:

• Leasehold improvements
• Advertising and marketing costs
• Purchase of an existing business
• Purchase of inventory
• Purchase of equipment
• One-time or part-time projects will be evaluated on a case-by-case basis

WeMB loans cannot be used for:

• Purchase of goodwill
• Owner’s draw or salary
• Investments in real estate for speculative purposes
• Financial consolidations, debt re-financing, and bail-outs
• Illegal or immoral activities

A comprehensive business plan is required to apply for a WeMB startup loan. We offer classroom seminars to help you write your plan, and our business advisors are available to guide you along the way. You will also need to complete a loan application and personal statement of affairs documents. A normal credit investigation will be completed.

Expansion loan applications require an overview of the existing business, particulars of the expansion, and a viability analysis.

Loans are available in any amount up to $150,000. Clients with existing loans may apply for additional funds, but the total amount owing cannot exceed $150,000.

Startup interest rate is prime +3%. Expansion interest rate is prime +2%

You do not need to be existing WeMB clients, but you will need to provide or demonstrate the following:

• A minimum of three years of profitable operation. This must be verified through professionally prepared financial statements from an accountant
• One year of projected monthly cash flow and profit/loss statements. Additional projections may be requested if the expansion is a long-term project
• A business case that provides an overview of the existing business, particulars of the expansion, and a viability analysis
• Complete loan application and personal statement of affairs documents
• A normal credit investigation will be completed
• Detailed listing of aged accounts receivable, accounts payable, and inventory may also be requested

Every situation is different so every loan application is evaluated on its own merits. The applicant must be:

• A legal entity
• A self-identifying woman (cis, trans, 2S or gender-diverse) or be an operation owned and controlled by the same
• A Canadian citizen or landed immigrant, or a legal entity owned and controlled by a Canadian citizen or citizens or a landed immigrant or immigrants
• Operating or about to operate in Manitoba
• In good standing with WeMB if there was pre-existing financing

In addition:

• Your business plan must demonstrate potential for commercial viability and loan repayment capacity
• You must demonstrate a reasonable personal history of credit-worthiness and stability or be able to provide an adequate explanation why an exception should be made
• Cash or other equity contributions and security requirements are evaluated on a case-by-case basis.

Step 1: Submit your business plan (electronically, by mail, or drop it off at WeMB).

If you aren’t already working with one of our Business Advisors, you will be assigned to one. Once your Business Advisor has reviewed your plan (usually within ten business days), they will contact you to arrange an in-person or telephone meeting. In most cases, the Business Advisor will have questions, require clarification, or request additional market research.

Step 2: Complete the Loan Application Form and Personal Statement of Affairs.

These documents will be provided by the Business Advisor. The Personal Statement of Affairs provides us with permission to carry out a credit check.

Step 3: The Business Advisor will take the application to the Loan Committee.

Once you have supplied all the necessary information, your application will be reviewed and a decision will be made. 

There are three factors that affect the length of time required for a lending decision:

1. The completeness of the business plan that you submit
2. The time it takes for you to provide required information and answer questions that arise
3. The complexity of your business concept

We carefully review every application in order to provide you with a professional and competent assessment.

We understand how disappointing it may be if your application for a loan is denied. We offer a fair and transparent appeals process.

To file an appeal, the applicant must provide, in writing to the Loans Manager, sound business reasons specifying why their application should be reconsidered, and also include any new information not previously received for consideration. An appeal must be received into the WeMB office within 15 business days of the date of the sent decline letter.

If the loan application is over $10,000, the original loan application, assessment, and appeal letter will be given to the Loan Appeal Committee, which consists of the Managing Director & Privacy Officer; the Director of Business Solutions; and/or other staff as designated by the CEO. The review will include additional input from the client and/or staff involved as deemed necessary by the Loan Appeal Committee.

If the loan application is less than $10,000, or if the loan was declined by the Loans Manager and Business Advisor, the original loan application, assessment, and appeal letter will be given to the CEO. The review will include additional input from the client and/or staff involved as deemed necessary by the CEO.

The Loan Appeal Committee has 30 business days to meet, review, and provide their recommendation regarding the appeal.

Whether the appeal is approved or declined, the Loans Manager will contact the applicant to explain the decision. If decliined a letter will be sent confirming the rationale fo the decline.

Recommendations made by the Loan Appeal Committee will be non-binding. They will provide their feedback and recommendations back to the Loans Manager for their consideration.