Futurpreneur Canada Newcomer Program
Highlights
If you are new to Canada and looking to start your business, this program is designed for you. It offers up to $25,000 in flexible startup financing, with half of the amount financed by Futurpreneur and the other half by BDC. This loan is tailored to newcomers who may have limited or no established credit history, making it easier for you to qualify.
What You Get:
- Up to $25,000 in financing
- Two years of one-on-one mentorship from experienced business leaders
- Access to valuable resources like business planning tools and workshops
- Networking opportunities with a national network of entrepreneurs and leaders
This program not only provides the financial support you need but also offers mentorship and resources to guide you through your entrepreneurial journey. The flexible repayment terms and the support system make it a better option compared to traditional loans. By being approved, you gain a solid foundation to grow your business and connect with a community that can help you succeed.
Financing Details
Type of Financing: Flexible Startup Business Loan
Loan Amount: Up to $25,000
- $12,500 financed by Futurpreneur
- $12,500 financed by BDC
Repayment Terms:
- Futurpreneur Loan:
- Up to $12,500 over a term of five years.
- Interest-only payments for the first year.
- Principal repayments in equal monthly installments with interest over the remaining four years.
- No penalty for early repayment.
- One-time loan management fee of 1% of the total loan amount at disbursement.
- BDC Loan:
- Please contact your local BDC office for specific terms and fees.
Eligible Expenses:
- Business setup costs
- Equipment purchases
- Leasehold improvements
- Working capital
Use of Funds:
- Funds cannot be used for personal expenses or non-business-related activities.
Fees:
- One-time loan management fee of 1% of the total loan amount at the time of disbursement.
Qualifications
- Must be a newcomer to Canada.
- Must be between the ages of 18-39.
- Must have lived in Canada for less than 60 months from the application processing date.
- Must be a Canadian citizen or permanent resident.
- Must have limited or no established credit history in Canada.
- Must have a social insurance number (SIN) that does not begin with a “9”.
- Must provide two character-based references, one of which must be from a Canadian citizen.
- Business must be in the pre-startup or startup stage (i.e., beyond the Idea or R&D phase).
Existing companies must have had less than a year of significant sales.
Disqualifications:
- Applicants who are 40 years of age or older.
- Applicants with a well-established credit history in Canada.
- Applicants without the required documentation (e.g., SIN starting with “9”, lack of character references).
Description
This program offers your business a chance to get started with up to $25,000 in flexible startup loans. Half of this amount, $12,500, comes from Futurpreneur, and the other half from BDC. This financial support can help you cover various startup costs, from buying equipment to marketing your new business.
Mentorship is another key benefit. You will receive up to two years of one-on-one guidance from an experienced business leader. This mentorship can provide valuable insights and advice, helping you navigate the challenges of starting and growing your business.
Additionally, you will have access to a range of resources. These include business planning tools and workshops designed to help you succeed. You can also connect with a national network of entrepreneurs and leaders through various networking opportunities. This program is designed to give your business the support it needs to thrive.
Program Steps
Sign Up for the Program: Visit the program's website and sign up to get connected with a dedicated team member. Provide your general information including name, email, phone number, province, city, and language preference.
Prepare Business Documentation: Gather the necessary documents to support your application. You will need:
- A comprehensive business plan
- Cash flow projections
- Social Insurance Number (SIN) that does not begin with a “9”
- Two character-based references, one of which must be from a Canadian citizen
Complete the Application Form: Fill out the full application form available on the program's website. Ensure all sections are completed accurately, including details about your business and financial information.
Submit Your Business Plan and Cash Flow: Upload your business plan and cash flow projections as part of your application. These documents are crucial for assessing your business's potential and financial viability.
Review Loan Terms and Conditions: Understand the loan terms, including the interest rate, repayment schedule, and any fees associated with the loan. This includes knowing the repayment terms for both Futurpreneur and BDC portions of the loan.
Engage with a Mentor: Once your application is submitted, you will be matched with a mentor. This mentorship will last up to two years and is a requirement of the program.
Await Approval: After submitting your application, it will be reviewed by the program administrators. They may contact you for additional information or clarification.
Receive Loan Disbursement: Upon approval, discuss the final loan terms and conditions. Once agreed upon, the loan funds will be disbursed, allowing you to proceed with your business activities.
Utilize Resources and Networking Opportunities: Take advantage of the resources provided, such as workshops and business planning tools. Engage with the national network of entrepreneurs and leaders through various events.
Start Your Business Journey: With the loan and mentorship in place, begin implementing your business plan and working towards your entrepreneurial goals.