VERGE Capital — Breakthrough Fund
Highlights
This program is designed for businesses like yours that prioritize social impact. It offers affordable and flexible loan financing tailored to support both startups and established enterprises. This means you can access the funds you need without the burden of high-interest rates or rigid repayment terms.
Why apply?
- Equitable access to capital: Especially beneficial if your business serves historically excluded and marginalized populations.
- Flexible loan terms: Adaptable to your business needs, making it easier to manage cash flow.
- Support for growth: Use the funds for operating expenses, new equipment, or expansion projects.
What's in it for you?
- Government-backed financing: More reliable and secure than other loan options.
- Community impact: By participating, you contribute to a greener and more inclusive economy.
Qualifying for this program is straightforward, ensuring you can quickly access the resources needed to drive your business forward.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Repayment Term: Up to 10 years.
- Interest Rate: Fixed at 3.5% per annum.
Eligible Expenses:
- Purchase of equipment and machinery.
- Leasehold improvements.
- Working capital for day-to-day operations.
- Intangible assets such as patents and trademarks.
Ineligible Expenses:
- Real estate purchases.
- Personal expenses.
- Debt refinancing.
Fees:
- Application Fee: $150, non-refundable.
- Administrative Fee: 1% of the loan amount, deducted from the loan disbursement.
- Late Payment Fee: 2% of the overdue amount per month.
Qualifications
- Must be a social enterprise.
- Must be located in Southwestern Ontario.
- Can be a for-profit business, nonprofit, or charity.
- Must prioritize social, environmental, and community impact.
Must be owned by, led by, or serving historically excluded and marginalized populations.
Disqualifications:
- Businesses outside Southwestern Ontario.
Description
This program offers your business a chance to receive up to $1.75 million in funding. This money can be used to grow and improve your business in various ways.
You can use the funds for:
- Expanding your operations
- Purchasing new equipment
- Investing in sustainable practices
- Supporting community-focused projects
The money comes with flexible conditions. You can use it for both startup costs and ongoing expenses. This means you have the freedom to allocate the funds where your business needs them most.
The loan terms are favorable. You have a generous payback period, allowing you to repay the loan over several years. This makes it easier to manage your finances while benefiting from the investment.
This program is designed to support businesses like yours, helping you achieve growth and sustainability. It’s a great opportunity to secure the funding you need to take your business to the next level.
Program Steps
Gather Required Documentation: Prepare the necessary documents for your application. This includes:
- Business plan
- Financial statements (income statement, balance sheet, cash flow statement)
- Proof of business registration
- Tax returns for the past two years
- Identification documents for business owners
- Any additional documents specific to your business type
Complete the Application Form: Fill out the application form provided by the program. Ensure all sections are completed accurately.
Write a Cover Letter: Draft a cover letter explaining why your business is applying for the program. Highlight how the funding will benefit your business and the community.
Submit the Application: Submit your completed application form, cover letter, and required documentation to the program's designated submission portal or address.
Follow Up: After submission, follow up with the program's contact person to confirm receipt of your application and inquire about the review process.
Prepare for an Interview: Be ready for a potential interview or site visit. This may be part of the application review process to better understand your business and its impact.
Await Decision: Wait for the program to review your application and make a decision. This may take several weeks.
Receive Funding: If approved, review the terms and conditions of the funding. Once accepted, the funds will be disbursed according to the program's guidelines.