Programs

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

CYBF Financing and Repayment Terms

• Up to $15,000 with a term over five years.
• Interest is charged at CIBC’s prime rate * plus 3%.
• Interest-only payments for the first year.
• Principal repayments are made in equal monthly instalments together with interest, over the remaining four years.
• No penalty for early re-payment.

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

Program Fees

• Program registration fee of $50, payable by cheque.
• A $15 program fee is charged monthly by CYBF for the duration of your loan, and this fee is added to your monthly repayment installment.

BDC Loan Terms (Spin Master Innovation Fund)

• $35,000 in financing.
• Interest-only repayment in the first year.
• Repayment of outstanding BDC principal by monthly repayment schedule similar to your CYBF loan or by one balloon payment at maturity date.
• The client may prepay all or any part of the outstanding principal, however, the 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% of the principal outstanding without indemnity.

BDC Interest Rates

• The interest charged is the BDC Floating Base Rate** plus 1%.
• Interest payments are made monthly after the initial disbursement.

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

BDC Related Fees

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