A survey done by the Canada Business Network shows that Canadian millennial entrepreneurs overwhelmingly consider the acquisition of financing the hardest part of beginning or growing a company. There are many funding sources available for small business owners, including private sector loans and regional and national government grants.
Futurpreneur Canada Startup Program
Futurpreneur Canada program is for young Canadians between the ages of 18 and 39 who are seeking startup financing to start or grow their companies. Through a partnership between Futurpreneur Canada and the Business Development Bank of Canada, you could qualify for a maximum of $30,000 in five-year loans with interest rates averaging between 3 and 5 percent. Additionally, new residents who have lived in Canada for less than five years and have a Canadian credit history may be eligible for a five-year loan with a maximum value of $45,000.
Youth Social Innovation Capital Fund
Available to only those ages 18 to 29, the Youth Social Innovation Capital Fund is a startup financing opportunity reserved for young entrepreneurs with an environmental or social business goal. Ranging from $1,000 to $25,000, the wide variety of loans this fund underwrites focuses on social entrepreneurs’ character, rather than their collateral. Mentoring and consistent support for the entrepreneurs and their business is also provided at no cost.
BDC’s Young Entrepreneur Financing Program
Millennials whose businesses have been in operation for over two years may receive a small business loan of up to $50,000 through the Business Development Bank of Canada’s financing programs for young entrepreneurs. For young entrepreneurs just starting out or within the first year of sales, financing opportunities are also available. Furthermore, the BDC also provides free coaching, mentoring and marketing services.
Ontario’s Starter Company
As an Ontario resident between the ages of 18 to 29, you may qualify for business skills training and $5,000 in government grants through a program called Startup Company. However, you can’t be a full-time student and must contribute at least 25 percent of your personal money to the grant amount to meet qualifications.
Quebec’s Jeunes Promoteurs
For Quebec citizens who have never started their own business and are between the ages of 18 and 35, the Jeunes Promoteurs program may offer financial assistance. Funding can be acquired through three potential components:
Perform a study of feasibility for a business plan, and 75 percent of your expenses will be covered.
If your startup will be creating a minimum of two jobs and you have a business plan, 50 percent of your expenses may be eligible for coverage.
You can receive entrepreneurial training in addition to access to assistance that may cover all of your eligible business expenses.
Manitoba’s Young Entrepreneurs Program
Young Manitobans can apply to the Young Entrepreneurs Program to receive a grant worth up to $4,000 to cover 50 percent of startup costs for the creation of their businesses. The program selects 18- to 29-year-olds who provide business plans illustrating the viability of their potential ventures. The biggest stipulation to remaining eligible for this grant is that you submit the application before your firm begins operations.