Type of Program:
Futurpreneur helps aspiring business owners aged 18-39 to launch successful businesses across Canada. Through various programs it also offers mentorship and consultancy that can go up to 2 years.
Comments on Funding:
Financing (collateral-free loans) is up to $60,000: $20,000 comes from Futurpreneur and $40,000 from Business Development Bank of Canada. Loan is repayable in 5 years. Futurpreneur Canada loan terms and fees:
- 1up to $20,000 with a term over five years;
- 2interest is charged at CIBC’s prime rate + 3.75%;
- 3interest-only payments for the first year;
- 4principal repayments are made in equal monthly instalments together with interest, over the remaining four years;
- 5no penalty for early repayment;
- 6a one-time loan management fee of 1% of the total loan amount is charged at time of disbursement.
BDC loan terms and fees:
- 1up to $40,000 in financing;
- 2interest-only repayment in the first year;
- 3the interest charged is the BDC Floating Base Rate* + 1.65%;
- 4repayment of outstanding BDC principal by monthly repayment schedule similar to the applicant’s Futurpreneur Canada loan. The applicant may prepay all or any part of the outstanding principal, however, BDC must receive the interest owing to the time of repayment, together with an indemnity equal to three months’ interest on the principal prepaid;
- 5Once a year (non-cumulative) on the anniversary date of the loan authorization date, the applicant may repay 15% of the principal outstanding without indemnity;
- 6BDC charges a $50 processing fee, which is deducted from the initial loan disbursement;
- 7Applications are subject to BDC approval and eligibility criteria. Some restrictions may apply.
When It Ends:
The applicant must:
Register online for the Start-up Program.
Share a draft business plan and cash flow (Futurpreneur can help if you don't have one!)
Futurpreneur will check credit score and business plan to make sure applicants are eligible.
Submit supporting documents, including a final, complete business plan and cash flow, business registration and ID.
The application will be reviewed.
Applicants must submit:
- 1a draft business plan and cash flow;
- 2final business plan and cash flow statement,
- 3business registration and
Other Things to Note:
- 1Futurpreneur Canada is a non-profit organization supporting Canadians aged 18-39 to become business owners with loan financing, mentoring and business resources.
- 2Futurpreneur also provides this loan to Black entrepreneurs and Indigenous entrepreneurs
- 3Futurpreneur works with a range of partners to support young, Indigenous entrepreneurs across Canada. (see entry: Nishnawbe Aski Development Fund (NADF) and Futurpreneur Canada - Aboriginal Youth Entrepreneurship Program (AYEP)).