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 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 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.
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 Loan Terms
- Up to double the CYBF approved loan, to a maximum of $30,000, with a term over five years matching the CYBF amortization period.
- Applicant(s) must show a minimum investment of 10% of total value of the project.
- 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, 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.
- Once approved, the 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%.
- Interest payments are made monthly after the initial disbursement.
*Please contact your local BDC office for the BDC Floating Base Rate
Related BDC Fees
- The BDC charges a $50 processing fee, which is deducted from the initial loan disbursement.