- Futurpreneur Canada is a national, non-profit organization that provides financing, mentorship and support tools to entrepreneurs aged 18-39. To support ongoing lending to young entrepreneurs, the federal government of Canada is injecting $20.1 million in additional funding to Futurpreneur Canada
- Futurpreneur Canada offers a collateral-free loan up to $20,000 per business
- Interest is charged at CIBC’s prime rate + 3.75%
- Interest-only payments for the first year are required
- Principal repayments are made in equal monthly instalments together with interest over the remaining four years
- There is penalty for early repayment
- A $15 program fee is charged monthly for the duration of your loan, added to monthly repayment installments
- A $50 fee is charged at the time of disbursement
- Together with Futurpreneur Canada, entrepreneurs needing more than $20,000 can apply for an additional $40,000 through the Business Development Bank of Canada (BDC). The following terms apply for the $40,000 BDC loan:
- Interest-only repayment in the first year
- Interest is charged at the BDC Floating Base Rate + 5%
- You 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
- Once per year (non-cumulative) on the anniversary date of the loan authorization date, you may repay 15% of the principal outstanding without indemnity
- BDC charges a $50 processing fee, which is deducted from the initial loan disbursement
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- Entrepreneurs must apply for the $20,000 and $40,000 loans through Futurpreneur Canada and the BDC, respectively
- To be eligible for the $20,000 loan through Futurpreneur Canada, entrepreneurs must: be aged between 18 and 39, demonstrate some training/experience related to the business idea, create full-time sustainable employment for the applicant(s), agree to work with a mentor for up to two years, produce a complete and viable business plan by the end of the application process, demonstrate that the business has been fully operating for fewer than 12 months, agree to provide authorization for Futurpreneur Canada to carry out a credit check, supply two personal references, and demonstrate that you have 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 a complete list of eligibility requirements, click here
- To be eligible for the $40,000 loan through the BDC, entrepreneurs must: be aged between 18 and 39 and demonstrate that the business has been fully operating for fewer than 12 months. Entrepreneurs must contact their local BDC office to speak to an advisor
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- Applications for the $20,000 loan through Futurpreneur Canada are accepted on a rolling basis
- Submit an application here
- Applications for the $40,000 loan through the BDC are also accepted on a rolling basis.
- You must contact their local BDC office to speak to an advisor
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