Women and non‑binary entrepreneurs are building viable businesses, creating jobs, and contributing to economic growth across British Columbia. Yet when it comes to accessing business loans, many encounter systems that are unclear, inconsistent, or difficult to navigate. The result is not just frustration for entrepreneurs, but lost opportunity for small business lenders.

Understanding Loan Experiences examines how today’s lending processes actually function from the borrower’s point of view, and where capable, growth‑ready businesses are being filtered out long before a credit decision is made.

Based on research with nearly 300 entrepreneurs, in‑depth interviews, and consultations with entrepreneurship support organizations, this report follows the full lending journey—from deciding whether to apply, to navigating applications, to responding to approval, denial, or silence. It shows how unclear eligibility criteria, complex documentation requirements, and limited relationship‑based support shape borrower behaviour and outcomes.

Rather than framing these outcomes as individual shortcomings, the report highlights how lending system design influences who participates, who persists, and who walks away.

Why This Matters for Financial Institutions

The research shows that lending outcomes are being shaped well before a credit decision is made—with measurable consequences for financial institutions:

• 28% of women entrepreneurs do not apply for a loan at all because they assume they won’t qualify, removing themselves from the lending pipeline before risk is ever assessed.
• 61% of women entrepreneurs report that existing financing options do not fit their business models, signaling a product–market mismatch rather than a lack of demand for capital.
• Only 40% of women entrepreneurs who apply for a business loan are successful, with many submitting just one application before disengaging entirely.
• Lenders lose potential long‑term clients with low default risk, while negative word‑of‑mouth and lost referrals further narrow future borrower pools.
• Canada has lost an estimated $150 billion in economic potential over the past eight years due to the gender gap in entrepreneurship, representing unrealized growth for both the economy and the financial sector.

Inside the report:

• What entrepreneurs experience when deciding whether to pursue a loan
• Where application complexity and inconsistency create drop‑off
• How credit and collateral requirements affect access and confidence
• Practical opportunity areas to improve clarity, engagement, and outcomes

This research is not about lowering standards or increasing risk. It is about understanding how lending systems operate in practice, and where small changes could lead to stronger pipelines, more resilient portfolios, and better alignment with today’s entrepreneurial realities.

Download the report to better understand where lending systems are losing viable borrowers—and what that means for your institution.