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:
- up to $12,500 with a term over five years;
- interest is charged at CIBC’s prime rate + 3.75%;
- interest-only payments for the first year;
- principal repayments are made in equal monthly instalments together with interest, over the remaining four years;
- no penalty for early repayment;
- a one-time loan management fee of 1% of the total loan amount is charged at time of disbursement.
The applicant must:
- 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.
Submit supporting documents, including a final, complete business plan and cash flow statement, business registration and ID.
Applicants must submit:
- a draft business plan and cash flow;
- final business plan and cash flow statement,
- business registration and