Futurpreneur Canada Newcomer Program (2022)

Description:

The Futurpreneur Newcomer Program aims to help entrepreneurs who recently arrived in Canada and don’t have a credit history necessary to secure financing.

Comments on Funding:

Funding from Futurpreneur is up to $12,500 per business. BDC may provide up to another $12,500. Futurpreneur Canada loan terms and fees:

  1. up to $12,500 with a term over five years;
  2. interest is charged at CIBC’s prime rate + 3.75%;
  3. interest-only payments for the first year;
  4. principal repayments are made in equal monthly instalments together with interest, over the remaining four years;
  5. no penalty for early repayment;
  6. a one-time loan management fee of 1% of the total loan amount is charged at time of disbursement.

Eligibility:

The applicant must:

  • Be aged 18 to 39.
  • Have lived in Canada for fewer than 60 months from the application processing date.
  • Be a Canadian citizen or a permanent resident of Canada.
  • Have a Social Insurance Number (SIN) that does not begin with a “9”.
  • Provide two character-based references (at least one must be a Canadian citizen).
  • To have limited or no established credit history in Canada.
  • fit the general eligibility criteria:
  • Demonstrate some training/experience related to his business idea.
  • Create full-time sustainable employment for the applicant(s).
  • Agree to work with a mentor for up to two years (4 to 5 hours a month).
  • Produce a complete and viable business plan by the end of the application process.
  • Business fully operating for fewer than 12 months.
  • Agree to complete Futurpreneur Canada status updates every month.
  • Agree to provide authorization for Futurpreneur Canada to carry out a credit check.
  • Supply two personal references.
  • Assure that the business is NOT in the research and development stage.
  • Assure that financing proceeds may not be used for refinancing existing debt.
  • BDC financing through a Futurpreneur Canada application is not available to all persons, corporations, firms and companies who are already a BDC borrower.
  • Have a business plan that falls within specified industry guidelines in order to be approved for financing. All BDC loans are subject to the eligibility criteria of the BDC.
  • Demonstrate that he has been discharged from bankruptcy for at least five years or one year after receipt of a Certificate of Full Performance in the case of a Consumer Proposal.
  • For establishments serving alcohol, a maximum of 49% of revenues can be generated from the sale of alcohol when same is consumed on-site. Exempt from this are producers such as craft breweries, wine and spirit producers, brew-it-yourself type locations.
  • Any age eligible entrepreneur (18-39 years old) who owns 5% or less of the business does not need to be party to Futurpreneur Canada and BDC application.
  • The amount invested, or to be invested in the Business, by the persons other than BDC and the character of the investment are such that a reasonable lender may expect that those persons will have a continuing commitment to the business An amount of 10% of the total project plan financing will in general be considered as sufficient for the entrepreneur investment.

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