Futurpreneur Canada Indigenous Program
Highlights
The Indigenous Entrepreneur Startup Program (IESP) is designed specifically for young Indigenous entrepreneurs like you. This program offers flexible, equity-free startup loans of up to $60,000. This financing can help you make essential purchases and investments for your business without giving up any ownership.
What You Get:
- Up to $60,000 in startup financing
- Two years of 1:1 mentorship from experienced business leaders
- Access to workshops and tools tailored to Indigenous entrepreneurs
- Networking opportunities with a national network of Indigenous entrepreneurs and leaders
This program stands out because it combines financial support with mentorship and resources, ensuring you have the guidance and tools needed for success. The loan terms are favorable, with interest-only payments in the first year, making it easier to manage your cash flow. By participating, you will gain not only the capital but also the community and knowledge to grow your business effectively.
Financing Details
Type of Financing: Startup Loan
Loan Amount: Up to $60,000
Repayment Terms:
- Up to $20,000 with a term over five years.
- Interest is charged at CIBC’s prime rate + 3%. (Capped at 9% if CIBC’s prime rate exceeds 6%.)
- Interest-only payments for the first year.
- Principal repayments are made in equal monthly installments 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 the time of disbursement.
Eligible Expenses:
- Business equipment
- Leasehold improvements
- Intangible assets
- Working capital
Ineligible Expenses:
- Personal expenses
- Non-business-related activities
Additional Fees:
- BDC charges a $50 processing fee, deducted from the initial loan disbursement.
Qualifications
- Must self-identify as Indigenous.
- Must be a Canadian citizen or permanent resident.
- Must be aged 18-39.
Must be looking to launch a business or have been operating the business for less than one year.
Disqualifications:
- Businesses that have been operating full-time for more than one year.
Description
This program offers your business a flexible, equity-free startup loan of up to $60,000. You can use this money to cover various startup costs, such as purchasing equipment, renting office space, or other initial expenses.
You will also receive up to two years of one-on-one mentorship from experienced business leaders. This guidance can help you navigate the challenges of starting a business and provide valuable insights to ensure your success.
Additionally, the program gives you access to resources and networking opportunities. You can participate in workshops designed to strengthen your financial skills and connect with a national network of Indigenous entrepreneurs and leaders. This support system can be crucial in helping your business grow and thrive.
Program Steps
Prepare Your Business Plan and Cash Flow Statements: Ensure your business plan and cash flow statements are detailed and ready for submission. These documents will demonstrate your business strategy and financial projections.
Gather Required Documentation: Collect the necessary documents for your application. These typically include:
- Business Plan
- Cash Flow Statements
- Proof of Indigenous Identity (self-identification)
- Proof of Age (18-39 years)
- Proof of Canadian Citizenship or Permanent Residency
Understand Loan Terms and Conditions: Review the loan terms, including interest rates, repayment schedules, and any associated fees. This will help you understand the financial commitment involved.
Complete the Application Form: Fill out the application form provided by Futurpreneur. Ensure all sections are completed accurately to avoid delays in processing.
Submit Your Application: Submit your completed application form along with the required documentation. This can typically be done online through the Futurpreneur website.
Attend an Interview or Consultation: You may be required to attend an interview or consultation with a Futurpreneur representative. This step helps to clarify any details and discuss your business plan in more depth.
Review and Sign Loan Agreement: If your application is approved, review the loan agreement carefully. Ensure you understand all terms and conditions before signing.
Receive Loan Funds: Once the agreement is signed, the loan funds will be disbursed to your business account. You can then use these funds to support your business operations as outlined in your business plan.
Engage in Mentorship Program: Take advantage of the mentorship program provided. This includes up to two years of 1:1 mentorship from an experienced business leader, which can be invaluable for your business growth.
Utilize Resources and Networking Opportunities: Participate in workshops, use available tools, and engage with the national network of Indigenous entrepreneurs and leaders. This will help you build connections and gain insights to further your business success.