Futurpreneur Canada

 

More youth-oriented. More entrepreneurial. More insightful.

Futurpreneur Canada (Canadian Youth Business Foundation) offers the support you need to get your business up and running. You can receive up to $45,000 to start your business! Futurpreneur Canada offers up to $15,000 in start-up financing, and you can get up to twice the amount approved by Futurpreneur Canada through its partnership with the Business Development Bank of Canada (BDC).

In addition to assistance and resources to help you develop a top-notch business plan, Futurpreneur Canada also offers mentoring, financing and post-start-up services to ensure you and your business achieve long-term success.

The mentoring aspect of the program is just as important as the financing aspect. You can propose your own mentor, or Futurpreneur Canada can help you find one. You will be given help to optimize your interactions with your mentor. In addition to giving you useful advice, a mentor can make recommendations related to negotiations, personnel management, conflict resolution and work/life balance.

Eligibility

Do you want to start your own business? Futurpreneur Canada offers financial support to young entrepreneurs who meet the following criteria :

Basic requirements for all candidates :

  • Be between 18 and 39 years old;
  • Have Canadian citizenship or permanent resident status in Canada;
  • Not be studying full time;
  • Create a complete and viable business plan;
  • Be starting a new business OR be running a business that has been fully operational for less than 12 months;
  • Live or run the business in a community where Futurpreneur Canada program is offered through a local partner (for Montréal, the partner is SAJE accompagnateur d’entrepreneurs);
  • Have training/experience related to the business idea;
  • Agree to work with a mentor for at least two years;
  • Have a business idea that will create a full-time job for the candidate;
  • Have received a bankruptcy release at least five years ago (if applicable);
  • The funds CANNOT be used to refinance an existing debt;
  • The funds CANNOT be used to finance businesses with activities that involve sexual exploitation, including those that offer sexually explicit products, services or entertainment; businesses that take part in or are associated with illegal activities; businesses that transact with countries proscribed by the federal government; businesses with activities that are inappropriate for public financing;
  • The funds cannot be used to finance a business in the research and development phase.

Partnerships and incorporated enterprises :

  • In addition to meeting the basic requirements, candidates who meet the age requirements must own at least 51% of the voting shares and take part in the daily management of the enterprise;
  • All partners who meet the age requirements must apply to Futurpreneur Canada. Minority shareholders who do not meet Futurpreneur Canada age requirements are not required to apply.

Incorporated enterprises owned by more than two shareholders
If the enterprise is owned by more than two shareholders and there is no majority shareholder, the shareholders must meet all the basic requirements and those who meet Futurpreneur Canada age requirements must collectively own the majority of the voting shares, take part in the daily management of the business and personally take responsibility for the operational obligations of the enterprise.

Financing for business succession :

  • In addition to meeting the basic requirements, you have until the end of the fifth year of operations to hold 51% of the ownership rights.

Triple up!

Once you are approved for financing from Futurpreneur Canada, you may also be eligible to receive additional financing – up to twice the initial Futurpreneur Canada loan offer. This opportunity is made possible through Futurpreneur Canada's partnership with the Business Development Bank of Canada (BDC) and is only available through Futurpreneur Canada.

Eligibility for BDC funding :

  • The application for additional financing must be approved by Futurpreneur Canada.
  • The candidate must invest at least 10%1 of the total value of the project (including transfer of personal goods).
  • Futurpreneur Canada clients have up to 30 days from the date of approval of their financing application to apply to the BDC.
  • Candidates must meet the BDC eligibility criteria outlined in the Application Form2 and comply with environmental policies, if applicable; all applications will be subject to final examination by the BDC.
  • BDC clients and candidates who have already submitted another financing application currently under consideration by the BDC are not eligible.

1This can be confirmed using invoices for company purchases, assets transferred to the business by the entrepreneur or bank statements with sufficient balances.
2A final examination by the BDC concerning legal problems, bankruptcy/insolvency, tax and income tax irregularities, criminal records, permits/licences, ineligible activities and applicable environmental policies may be required before authorization.

Financing

Futurpreneur Canada and our partner, the Business Development Bank of Canada (BDC), are proud to support Canada's innovative young entrepreneurs with financing to launch their businesses – See more at www.cybf.ca/cybf_programs/innovation/financing/

Futurpreneur Canada financing and terms of repayment :

  • up to $15,000 under the regular program;
  • if the loan is $7,500 or less, the repayment period is three years;
  • if the loan is over $7,500, the repayment period is five years;
  • interest-only payments for the first year;
  • principal repayments are made in equal monthly instalments together with interest, over the remaining two to four years, depending on the amount of the loan;
  • no penalty for early repayments.

Interest Rates :

  • The interest rate is the CIBC prime rate plus 3% for five years.

*Go to the CIBC website to see the current interest rate (upper right corner)

Related fees :

  • Futurpreneur Canada charges an initial fee of $50, payable by cheque.
  • A $15 program fee is charged monthly by Futurpreneur Canada for the duration of your loan, and this fee is added to your monthly repayment instalment.

Triple Up !
Once you are approved for financing from Futurpreneur Canada, you may also be eligible to receive additional financing – up to twice the initial Futurpreneur Canada loan offer. This opportunity is made possible through Futurpreneur Canada’s partnership with the Business Development Bank of Canada (BDC) and is only available through Futurpreneur Canada.

Terms of the BDC loan :

  • Up to twice the loan amount approved by Futurpreneur Canada, to a maximum of $30,000.
  • Candidates must demonstrate that they have invested a minimum of 10% of the total value of the project.
  • Repayment of interest only for a period of three to five years, similar to Futurpreneur Canada amortization period.
  • Repayment to the BDC of the outstanding capital on the due date by a final lump sum payment.
  • The client may prepay all or any part of the outstanding principal, but the BDC must receive the interest owing to the time of re-payment, together with an indemnity equal to three months’ interest on the principal prepaid.
  • Once a year (non-cumulative) on the anniversary of the loan authorization date, the client may repay 15% of the outstanding principal without indemnity.
  • Once the application is approved, the BDC will prepare a letter of offer outlining the other general terms and conditions.

BDC interest rate :

  • The interest charged is the BDC Floating Base Rate* + 5.65%
  • Interest payments are made monthly after the initial disbursement - See more here.

* Please contact the BDC office nearest you to find out the current floating base rate..

Related BDC Fees :

  • The BDC charges a $50 processing fee, which is deducted from the initial loan disbursement.

To apply

If your business is located in Montréal and you want to apply to Futurpreneur Canada program, these are the steps to follow :

Contact

Interested in starting a business? Click here or call at 1 800 464 2923.

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