Servus Credit Union Micro Loan Program

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Western Economic Diversification Canada (WD) offers this Micro Loan Program in cooperation with Servus Credit Union. This loan program is designed to improve access to patient debt capital for companies that are unable to secure regular financing due to a lack of hard assets, a lack of resources and experience in preparing a business case, the early stage of the company, and/or a lack of familiarity of capital providers with the industry sector.

Who is eligible?

The Servus Credit Union Micro Loan Program is specifically designed to benefit people meeting the following criteria:

• Servus Credit Union member in good standing; or
• Enrolled in or a graduate of the Self-Employment Benefits Program or similar entrepreneurial program;
• Operating or about to operate a business in the Edmonton area;
• Less than 50 employees and average annual sales not exceeding $1 million; and
• Willing to act as a mentor to other borrowers in the program.

To be eligible for a business micro loan, interested applicants must clearly show a commitment to starting or expanding a small business. This may involve demonstrating a significant time commitment to the start-up or management of the business and some financial stake in the potential or existing business.

What can the loans be used for?

The Servus Credit Union Micro Loan Program is designed to improve access to financing for small businesses starting or expanding in the Edmonton area. This could include activities such as:

• Getting your product or service ready for sale
• Developing or enhancing your product or service
• Marketing
• Working capital

What are the terms of the loans?

The loan terms are designed to be flexible to help you maintain adequate cash flow throughout the year. Individual loans are subject to the following terms:

• up to five years for repayment
• loans can range to a maximum of $35,000
• security for the loan at Servus Credit Union’s discretion
• Servus Credit Union makes the final decision on all loan approvals
• interest rates are set at Servus Credit Union’s Prime rate* plus a risk premium

* Servus Credit Union’s Prime Rate fluctuates with market interest rates

How can I apply?

If you would like more information about this or other programs and services we offer, contact Western Economic Diversification Canada at 1-888-338-WEST (9378) or visit WD's Web site.

For more information on programs and services available through the Servus Credit Union Business Banking Centre call (780) 496-2142, or visit the Servus Credit Union Web site.

What other services may I be eligible for through Western Economic Diversification Canada?

With over 100 points of service in urban and rural communities across the West, the Business Service Network is made up of several integrated organizations that provide entrepreneurs with what they need to establish a business or make it grow.

Network partners work at the local level to ensure western Canadians have direct access to information on a wide range of financing alternatives, which will help determine your eligibility for services that best suit your needs. They offer various services from marketing and funding options to counselling and support. For more information on the services our network provides and the network member nearest you, please visit WD’s Business Service Network.