Running a side business while keeping a steady paycheque is common in Canada. Futurpreneur Canada created its Side Hustle loan to support entrepreneurs who are testing an idea without quitting their full-time job. If you are weighing this option, the most important details are how much it costs, how repayment works, and what you are committing to long term.
Below is a clear breakdown of how Futurpreneur side hustle loans work, based on current program terms from Futurpreneur Canada.
The Futurpreneur Canada Side Hustle program offers repayable financing, not a grant. It is designed for early-stage founders who have reliable income outside their business and want affordable startup capital.
This funding can be used for common startup costs such as equipment, inventory, marketing, or working capital tied directly to your side business.
The interest rate is variable and tied to the bank prime rate:
Your interest cost may go up or down if the prime rate changes.
One of the most helpful features of Futurpreneur side hustle loans is the built-in grace period:
This gives your business time to generate revenue before full repayment begins.
After the first year:
This predictable structure makes it easier to budget cash flow as your business grows.
There is one mandatory fee:
For example, a $20,000 loan would include a $200 management fee.
This is useful if your side business becomes profitable faster than expected.
Based on program FAQs and eligibility guidance, this loan is designed for founders who:
GrantHub’s eligibility matcher lets you quickly find programs by province, industry, and founder profile.
Assuming it’s a grant
This is a repayable loan. You must plan for monthly payments after the first year.
Ignoring variable interest risk
Because the rate is prime + 3%, higher interest rates mean higher payments.
Forgetting the management fee
The 1% fee is small but should be included in your startup budget.
Overborrowing too early
Taking the full $25,000 before validating demand can strain cash flow later.
Q: Is the Futurpreneur Side Hustle loan taxable income?
No. Loan funds are not considered taxable income. However, interest paid is not treated like a grant and is not tax-free.
Q: Do I need to quit my job to qualify?
No. In fact, you must have full-time income outside your side business to be eligible.
Q: How much can I borrow through the Side Hustle program?
You can borrow up to $25,000, depending on your business plan and financial profile.
Q: Are there penalties if I pay it off early?
No. There is no penalty for early repayment.
Q: Is mentoring included with the loan?
Yes. Futurpreneur typically pairs borrowers with a mentor, which is a key non-financial benefit of the program.
GrantHub tracks hundreds of active grant and loan programs across Canada—see which ones match your business profile.
A Futurpreneur side hustle loan can be a smart way to fund early growth without giving up your day job. The key is understanding the real cost of borrowing and planning repayments before you apply. GrantHub helps you compare this program with other federal, provincial, and non-profit funding options, so you can choose what fits your business best.
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