Programs

The Canadian Youth Business Foundation (CYBF) and our partner, the Business Development Bank of Canada (BDC) are proud to support Canada’s young entrepreneurs with financing to launch your business.

CYBF Financing and Repayment Terms 

• Up to $10,000 under our standard program
• Amortization over 51 months
• Interest-only payments for the first three months
• Principal repayments are made in equal monthly instalments together with interest, over the remaining four years (48 months)
• No penalty for early re-payment

CYBF will add the outstanding loan balance (if any) to the new loan and amortize the total amount for a maximum term of 48 months.

Interest Rates 

• For the first three months, interest is charged at CIBC’s prime rate,* plus two per cent
• The remaining loan repayments will be amortized over 4 years (48 months) as follows:
• First year, CIBC prime rate* plus two per cent
• Second year, if all payments have been made in accordance with the loan agreement during the first year, the interest rate is CIBC’s prime rate*, plus one and a half per cent
• Third and fourth years, if all payments have been made in accordance with the loan agreement during the first year, the interest rate is CIBC’s prime rate, plus one per cent

*Visit CIBC’s website for the current prime rate (located at the top right of the page)

Related Fees 

• The CYBF charges an initial set-up fee of $50, payable by cheque
• A $15 administration fee is charged monthly by CYBF for the duration of your loan, and this fee is added to your monthly repayment instalment

Double Up!

Once you are approved for funding from CYBF, you may also be eligible to receive additional financing – up to twice the initial CYBF loan offer. This opportunity is made possible through CYBF’s partnership with the Business Development Bank of Canada (BDC), and is only available through CYBF.  BDC offers a maximum of $30,000 to any business throughout its lifecycle through CYBF’s programs. As such, the total BDC funding available through the Expansion Program depends on how much you received already through the Start-up Program or Newcomer Program.

BDC Loan Terms 

• Up to double the CYBF approved Expansion Program loan, not exceeding $30,000 when added to the amount received by BDC through the Start-up or Newcomer Programs
• Applicant(s) must show a minimum  investment of 10% of total value of the project
• Interest repayment only for three to five years matching the CYBF amortization period
• Repayment of outstanding BDC principal at the loan maturity date with one balloon payment
• The client may prepay all or any part of the outstanding principal, however, BDC must receive the interest owing to the time of re-payment, together with an indemnity equal to three months’ interest on the principal prepaid
• Once a year (non-cumulative) on the anniversary date of the loan authorization date, the client may repay 15 per cent of the principal outstanding without indemnity
• For any other prepayment options during the term of the BDC loan, please consult BDC directly
• Once approved, BDC will issue an offer letter outlining additional terms and conditions

BDC Interest Rates 

• The interest charged is the BDC Floating Base Rate* + 5.65 per cent
• Interest payments are made monthly after the initial disbursement

*Please contact your local BDC office for the BDC Floating Base Rate

Related BDC Fees 

• BDC charges a $50 processing fee, which is deducted from the initial loan disbursement