• What is the Woveo SMB Loan Program? The Woveo Lending Pilot is an initiative designed to empower small and micro-sized businesses (SMBs) in Ontario, Canada, by providing accessible and affordable financing1. It combines innovative lending practices with financial literacy and community accountability
• What makes the Woveo Loan Program unique? The program offers affordable access to credit, uses a community-driven accountability model, focuses on grassroots economic development, and integrates financial literacy resources2. It replaces traditional credit scores with a community-supported accountability model
• What is the loan amount and interest rate? The loan amount is fixed at $5,000 - $10,000 per borrower with a fixed annual interest rate of 10-18%. The repayment term is 12 months
• Are there any penalties for prepayment? No, there are no prepayment penalties
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What is the repayment process like? There are fixed monthly payments over 12 months with automated tracking through the Woveo platform5. Late fees apply for overdue payments beyond a 5-day grace period
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How does the program help build credit? Borrowers' repayment performance directly enhances their Woveo credit score, unlocking access to exclusive financial services and better rates in future programs
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What is the goal of the Woveo SMB Loan Program? The program aims to bridge financing gaps for underrepresented entrepreneurs, foster sustainable growth, and promote community-driven economic development
FAQs for Borrowers
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Who is eligible to apply for a loan? Legally registered SMBs operating in Ontario with a minimum of 3 months in business and monthly revenue of at least $3,000 CAD are eligible5. Borrowers must comply with Woveo's Terms and Conditions
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How will the funds impact my business? Borrowers need to describe how the loan funds will impact their business operations and growth
FAQs for Accountability Partners (APs)
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What is an Accountability Partner? An Accountability Partner is a trusted peer, mentor, or colleague who supports a Woveo SMB loan applicant in achieving their business goals
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What does an Accountability Partner do? APs provide moral and financial accountability support, track borrower repayment status, and encourage adherence to loan terms
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What are the benefits of being an Accountability Partner? APs can earn a 3% interest incentive on their savings for every on-time repayment by the borrower, and they also grow their own financial literacy and security
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Do I have any financial liability as an Accountability Partner? No, APs are not financially responsible for the borrower's loan
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How does the savings incentive work? APs are encouraged to save $100 per month during the loan term. They earn 3% interest on their savings for every successful monthly repayment made by the borrower
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Is there a lock-in period for my savings? Yes, the pooled savings will be locked in for the loan term of the Woveo SMB Loan that the AP is supporting. However, you can stop or pause your accountability partner savings at any time.
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What are the eligibility criteria for becoming an AP? APs must agree to program terms, demonstrate financial stability, make an initial deposit during onboarding, and cannot also be a borrower in the program
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How do APs participate in a savings group? The program encourages collaborative financial practices. APs are encouraged to save $100 a month during the loan term
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How can I track the borrower's repayment progress? APs can monitor the borrower's repayment progress through the Woveo app
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When will my funds be available? After 1 year of the loan program, your saved contributions and the interest gained will be reverted to you as an accountability partner.
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What is the role of community in the Woveo program? The Woveo program emphasizes community accountability, fostering a framework where economic development is driven by and for local businesses1. The community support in accountability partners provides a strong testimonial base for community businesses6. The program replaces traditional credit scores with a community-supported accountability model
Questions from business calls - Justina
revenue sharing: do we want to make it 1-3% of whatever the borrower pays back goes to APs justina@woveo.com on this as we are not providing interest back to the AP would there be an incentive we can provide/ tie in for the pilot?
Accountability Partner FAQ’s
1. What is a Woveo Accountability Partner?
A Woveo Accountability Partner (AP) is a trusted peer, mentor, or colleague who supports an Entrepreneur in their Woveo SMB Loan journey. They provide moral and financial accountability for the entrepreneur, encouraging on-time loan repayments and they earn financial incentives for their participation, support and encouragement.
2. What is the role of an Accountability Partner?
An Accountability Partner’s role includes:
Supporting the borrower by joining their loan group.
Monitoring repayment progress through the Woveo app.
Encouraging on-time repayments.
Contributing $100 per month to a savings group during the loan term.
3. How do Accountability Partners earn incentives?
Accountability Partners earn a 3% interest incentive on their monthly savings contribution for every on-time, full repayment made by the borrower. This incentive is credited to their account.
4. How does the savings process work for Accountability Partners?
Accountability Partners contribute $100 per month to a savings group for the loan term.These savings from the accountability partner are locked in (usually 12 months/ 1 year) but savings can be paused and/or resumed as needed. Contributions earn a 3% interest incentive for every successful monthly repayment by the borrower.
5. Can an Accountability Partner withdraw their savings before the loan term ends?
No, savings are locked in for the duration of the loan term to ensure commitment and stability for the borrower’s repayment plan. However, contributions can be paused and resumed as needed.
6. What is the initial deposit for Accountability Partners?
The initial deposit is the first $100 savings contribution made during onboarding. This deposit activates the borrower’s loan funds and initiates the Accountability Partner’s participation in the program.
7. What if an Accountability Partner cannot continue their role during the loan term?
If an Accountability Partner is unable to continue, in there role, there is the option to pause their savings contributions until such a time that the Accountability Partner sees fit to continue or resume their savings.
In the event that an Accountability partner would like to completely remove themselves from the Woveo SMB Loan program. The Accountability partner will need to contact Woveo Community Support at the email address: support@woveo.com to review this request. As a result of this, the business in question may be required to nominate an alternate accountability partner.
8. Do Accountability Partners have financial liability for the borrower’s loan?
No, Accountability Partners are not financially liable for the borrower’s loan. They support by providing accountability and encouragement but are not responsible for repayment.
9. How do I become an Accountability Partner?
You can become an Accountability Partner by:
Accepting the borrower’s invitation through the Woveo app.
Completing your Woveo profile.
Agreeing to program terms and making your initial deposit.
Participating actively in your Woveo SMB Loan group.
10. How do Accountability Partners monitor the borrower’s progress?
Accountability Partners can use the Woveo app to track your SMB Loan group.
11. What happens if a borrower misses a repayment?
Accountability Partners will be able to view the payment history of their Wovoeo SMB Group via the Woveo app and as accountability partners are encouraged to reach out to the business/ entrepreneur they are supporting from a position of a financial health check.
Please note, this does not affect your savings directly, however, the performance incentive (interest rate on savings incentive) for that or the respective month will not be applied.
12. What happens if a borrower misses multiple loan repayments?
If a borrower is not able to make a payment/s for the purpose of participating in the Woveo Loan Program, the respective business is encouraged to reach out directly to our Woveo Support team through telephone at 1-825-800-0995 or by email at support@woveo.com, at your soonest convenience to make a respective payment arrangement for your Woveo SMB Loan.