A boost for new business: Futurpreneur raises loan amounts for young entrepreneurs up to $75,000

Futurpreneur, in collaboration with BDC and RBC and with support from the Government of Canada, expands eligibility to empower more entrepreneurs ages 18-39 to start, buy and grow businesses across the country.

TORONTO, Sept. 12, 2024 /CNW/ - Launching a business can be the start of an exciting journey, but many young entrepreneurs have trouble accessing the financing and mentorship they need to succeed. Today, Futurpreneur, Canada's leading national non-profit organization supporting diverse young entrepreneurs, is thrilled to announce significant enhancements to its signature loan with mentorship offerings designed to make it easier for more aspiring business owners to achieve their entrepreneurial goals.

Effective immediately, Futurpreneur is increasing its startup loan offerings to provide up to $75,000 in collateral-free financing, alongside one-on-one mentorship. The organization is also expanding its eligibility criteria to support young entrepreneurs who have been in business for up to 24 months —doubling the previous 12-month threshold. This addresses a critical funding gap for young founders who have launched their businesses but lack the equity or financial track record required by most small business lenders.

Side hustle entrepreneurs will also benefit from increased loan offerings of up to $25,000 paired with one-on-one mentorship.

These enhancements are made possible by the Government of Canada's five-year $60-million investment in Futurpreneur, announced in April 2024, building on more than two decades of federal support of Futurpreneur's programs that have helped more than 18,700 young entrepreneurs launch businesses spanning every province and territory. This renewed federal commitment enables Futurpreneur to expand its support of diverse young entrepreneurs, including those from equity-deserving communities that too often face additional barriers to accessing the resources they need to succeed, such as Black, Indigenous, newcomer, official language minority and 2SLGBTQIA+ individuals and those in rural and remote areas.

"At Futurpreneur, we understand the unique challenges faced by young entrepreneurs who don't have equity to borrow against or experienced business networks to learn from," says Karen Greve Young, CEO of Futurpreneur. "By increasing our loan amounts and expanding our program eligibility, we are empowering the next generation of business owners with the financing and mentorship they need to start and grow successful, sustainable businesses in communities across Canada."

"Our government is a proud supporter of Futurpreneur and its critical work in supporting young entrepreneurs. That is why we invested $60 million in Futurpreneur through our latest Budget," says the Honourable Rechie Valdez, Canada's Minister of Small Business. "By expanding loan eligibility and increasing the amount of loans available, even more young entrepreneurs will now be able to receive financial and mentorship support to help them startup, grow and be successful. Congratulations to Futurpreneur for making these important changes so even more young entrepreneurs can be supported."

Enhanced loan offerings

Aspiring young entrepreneurs and those in their first 24 months of business can now access loans up to $75,000 – an increase from the previous $60,000 maximum.

For young entrepreneurs in Futurpreneur's Core Startup Program and young, Indigenous founders in Futurpreneur's Indigenous Entrepreneur Startup Program (IESP), the new funding offering includes up to $25,000 from Futurpreneur matched 2:1 with up to $50,000 from BDC.

For young, Black entrepreneurs in Futurpreneur's Black Entrepreneur Startup Program (BESP), funding includes up to $50,000 from Futurpreneur, funded by RBC, with an additional $25,000 from BDC. Futurpreneur will continue to offer follow-on financing of up to $40,000 for Futurpreneur-supported Black entrepreneurs with two to four years of business performance, funded by RBC.

These new, increased loan offerings build on Futurpreneur's successful 16-year co-lend partnership with BDC, now delivered within BDC's new Community Banking Division.

Entrepreneurs balancing full-time jobs with side businesses will now have access to loans with mentorship of up to $25,000 through Futurpreneur's Side Hustle Program,  an increase from $15,000. This comes at a time when, according to RBC, more than 75% of Canadians are thinking about launching a side hustle, with a higher proportion among Gen Z (born 1997-2012).  

Each of these programs includes Futurpreneur's proven model of two years of one-on-one mentorship alongside loan financing, ensuring that young entrepreneurs have the support they need to succeed in the challenging early years of their businesses.

Extended eligibility requirements

In response to community feedback and insights from across the Canadian entrepreneurial ecosystem, Futurpreneur is expanding its stage eligibility to support young entrepreneurs with businesses that have been operating for up to 24 months —doubling the previous limit of up to 12 months. This addresses a critical gap in accessible funding for small businesses that often need to demonstrate two years of financial results to procure loans from traditional lenders.

Karen Greve Young, CEO of Futurpreneur notes that "These changes, made possible by our invaluable partnerships with BDC and RBC, and a significant investment from the Government of Canada in Budget 2024, will empower more young entrepreneurs, especially those from equity-deserving communities, to overcome barriers and achieve their entrepreneurial ambitions. Together, we are fostering prosperity for young adults while driving inclusive economic growth in communities across Canada."

"At BDC, we are committed to supporting the next generation of entrepreneurs in Canada," says Miguel Barrieras, Chief Community Banking and Impact Officer of BDC.

"BDC started 80 years ago, with 26 people in one office traveling to meet entrepreneurs in a camper van. Move forward to today, our mission to help business owners access the resources they need to succeed remains. Our longstanding partnership with Futurpreneur has empowered thousands of young entrepreneurs in every province and territory, and today's announcement will mean more young entrepreneurs especially those from underrepresented communities will gain access to loan capital to power their entrepreneurial goals."

"Since inception, the Black Entrepreneur Startup Program has provided access to capital, advice and mentorship to young Black entrepreneurs aspiring to start their own business journey," says Sue Noble, Vice President, Commercial Financial Services Strategy at Royal Bank of Canada. "We are pleased to announce enhancements to the program as these build on our strong partnership with Futurpreneur and BDC, and further enables RBC to advance our commitment of providing $100 million in capital to Black entrepreneurs over five years."

Statistics Canada estimates that the percentage of business owners under 50 years old fell by 15% between 2004 and 2020, to just 38% overall – a trend that must be addressed for Canada to have a strong and sustainable economic future. Fortunately, RBC reports a growing appetite for pursuing small businesses across the country, with more Canadians interested in entrepreneurship as a path to career advancement and autonomy.

However, recent data from BDC highlights that nearly half of small business founders in Canada are concerned about access to financing. Additional research from C.D. Howe Institute indicates that entrepreneurs from equity-deserving communities, including newcomers, women and Indigenous entrepreneurs, face greater barriers to startup financing.

With these eligibility and loan enhancements, Futurpreneur and its partners are taking bold, innovative steps to ensure that diverse, young entrepreneurs have the support they need to start and grow successful businesses, driving inclusive and sustained economic prosperity in communities across Canada.

About Futurpreneur

Futurpreneur is a national, non-profit organization that provides loans with mentorship and resources to diverse entrepreneurs, ages 18-39, who are looking to start, buy or grow their businesses in Canada. We help diverse young founders reach their startup goals and provide bilingual (English and French) supports and resources to empower business owners on their entrepreneurial journeys.

Founded in 1996, the organization was established to promote entrepreneurship among Canadian youth as a critical pillar for diversifying the economy, generating employment opportunities and fostering a sustainable future. Since then, Futurpreneur has helped more than 18,700 young entrepreneurs start or buy small and growing businesses across Canada.

Futurpreneur is a founding member of the G20 Young Entrepreneurs' Alliance, the Canadian member of Youth Business International and the Canadian host of Global Entrepreneurship Week (GEW).

SOURCE Futurpreneur

Media contact, Cara Scholl, [email protected]