Black Entrepreneur Startup Program

By mmuise
Description:

The Black Entrepreneur Startup is a program for Black entrepreneurs designed to provide startup loan financing and up to two years of mentorship, plus access to resources and networking opportunities with fellow entrepreneurs across Canada.


Comments on Funding:

Funding is a startup loan financing from $5,000 to $60,000 (up to $40,000 of which is delivered by Futurpreneur, funded by RBC; and up to $20,000 loaned by BDC)

Deadline: Continuous Intake
Eligibility:

Applicants must:

  • self-identify as Black and be Canadian citizens or permanent residents age 18-39;
  • be majority Black-owned business (> 50%), when there are only two partners (owners) of the applicant business;
  • be at least 25% Black-owned business(≥25%).When there are more than two partners (owners);
  • fit the following eligibility criteria: a) demonstrate some training/experience related to their business idea;
    b) create full-time sustainable employment for the applicant(s);
    c) agree to work with a mentor for up to two years;
    d) produce a complete and viable business plan by the end of the application process.
    e) be business fully operating for fewer than 12 months;
    f) agree to complete Futurpreneur Canada status updates every month;
    g) agree to provide authorization for Futurpreneur Canada to carry out a credit check;
    h) assure that the business is NOT in the research and development stage;
    i) assure that financing proceeds may not be used for refinancing existing debt;
    j) not be available to all persons, corporations, firms and companies who are already a BDC borrower;
    k) have a business plan falls within specified industry guidelines in order to be approved for financing;
    l) demonstrate that they have been discharged from bankruptcy for at least five years or one year after receipt of a Certificate of Full Performance in the case of a Consumer Proposal;
    m) have a maximum of 49% of revenues generated from the sale of alcohol when same is consumed on-site (for establishments serving alcohol). Exempt from this are producers such as craft breweries, wine and spirit producers, brew-it-yourself type locations;
    n) not need to be party to Futurpreneur Canada and BDC application if any age eligible entrepreneur (18-39 years old) owns 5% or less of the business.
    o) have the amount invested, or to be invested in the business, by the persons other than BDC and the character of the investment are such that a reasonable lender may expect that those persons will have a continuing commitment to the business. An amount of 10% of the total project plan financing will in general be considered as sufficient for the entrepreneur investment;
    Additional eligibility criteria for partnerships and incorporated businesses:
  • Age-eligible applicants) must have at least 51 per cent of the voting shares and be involved in the day-to-day management of the business.
  • Age-eligible partners who are able to demonstrate shareholder ownership of 5% or less are not required to apply.
    Additional eligibility criteria for incorporated businesses with more than two shareholders:
  • If there are more than two shareholders, those who meet the age criteria must collectively hold the majority of the voting shares, be involved in the day-to-day management of the business, and take direct responsibility for operational liability.
    Additional eligibility criteria for entrepreneurs interested in purchasing an existing business through a succession plan:
  • Applicants must meet all general eligibility criteria, except that the requirement to attain 51 percent ownership is delayed until the fifth year of operation.
Application Steps:

Applicants must:

1. go to https://www.futurpreneur.ca/en/ and register as a new entrepreneur by clicking > register/login > application portal > register as an entrepreneur

2. receive an automatic email asking them to confirm their email address and continue their request (click on the link). If they don’t receive the confirmation email, they have to check their spam folder.

Documentation Needed:

Applicants must submit the completed application form and upload the required documents, including:
a) a completed business plan;
b) financial forecasts for the next two years and a month-by-month breakdown; and
c) Government ID (passport or driver’s license).

Other Things to Note:

A Futurpreneur program funded by RBC, with additional loan financing from BDC.

About the author
mmuise