Finding financing to start a business is no easy task. Fortunately, there are several financing programs supported by the federal government and the public sector to help you get your new business off the ground.
In this article, find out about some of the financing programs developed by various organizations to help start a business in Canada.
A variety of financing programs offered by the Business Development Bank of Canada
The Business Development Bank of Canada (BDC) is the only financial institution in the country dedicated solely to entrepreneurs. Founded in 1944 by the Parliament of Canada, its mission is to contribute to the development of SMEs through financing programs and consulting services.
Here are a few examples of its financing programs that can provide a serious helping hand in the business start-up process.
BDC start-up financing
BDC offers a complete start-up financing solution to help you achieve your business objectives. This financing can be used for working capital to complement an existing line of credit, cover marketing and start-up costs, franchise acquisition, etc.
Eligible companies have to demonstrate, among other criteria, that they have been generating revenues for less than 12 months, that they are established in Canada for the first time, and that they have a solid business plan.
BDC loans to Aboriginal entrepreneurs
Are you an Aboriginal entrepreneur? If you take the necessary steps, you could benefit from a loan of up to $150,000 for the creation of your business and cover the start-up costs.
BDC also offers other loans to Aboriginal entrepreneurs for the expansion of an existing business. These loans can be as high as $250,000 and can be used to acquire capital assets, start exporting, etc.
To learn more about BDC commercial loans and how to benefit from them, you can always seek advice from a qualified corporate tax specialist.
Futurpreneur Canada helps Canada's young entrepreneurs build their companies
Futurpreneur Canada is the only not-for-profit organization that provides financing, mentoring and other support to young Canadian entrepreneurs between the ages of 18 and 39. If you fall within this age range and meet the eligibility criteria, you may be eligible for one of the following programs.
The Futurpreneur Canada Business Start-Up Program
Futurpreneur Canada's Business Start-Up Program provides eligible young entrepreneurs with loans of $20,000 to start or purchase a business.
If you are eligible, you could also apply to benefit from the financing program resulting from the collaboration between Futurpreneur Canada and the BDC to obtain an additional $40,000, for a total of $60,000 in loans.
The Futurpreneur Canada Newcomer Program
It can be difficult for young newcomers to get loans to start a business because of their limited credit history. That's why Futurpreneur Canada provides eligible newcomers with $12,500 in repayable loans to start a business.
If you are a young newcomer and want to start your business in Canada, you may also find it helpful to consult with business accounting experts to help you navigate through Canadian taxation and achieve your financial goals.
Several financing opportunities to help you start your business
In conclusion, the Canadian government, through various organizations, provides several financing and subsidy options to help entrepreneurs in all sectors get their businesses off to a good start. That said, the BDC and Futurpreneur Canada offer some interesting business start-up programs, but there are also a variety of other private sector programs to help your business succeed.
At T2inc, Canadian taxation is our specialty. We welcome you to contact us to help you find the right financing to get your business off to a great start!