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 $15 program fee is charged monthly for the duration of your loan, added to the applicant’s monthly repayment installment;
- 7a $50 fee at the 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* + 5%;
- 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 make sure applicants are eligible.
Submit supporting documents, including a final, complete business plan and cash flow.
The application will be reviewed.
Other Things to Note:
The Business Development Bank of Canada (BDC; French: Banque de Développement du Canada) is a federal development bank structured as a Crown corporation wholly owned by the Government of Canada.
Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business.
Click here to learn more about Moe’s background and how he can help your business.