Student Entrepreneurship Information Booklet

What is it?

The Student Entrepreneurship component of the Student Employment and Experience Development Program (SEED) Program is a unique part of the Government of New Brunswick's summer employment programming. It offers interest-free loans to students who wish to create summer employment and gain valuable business experience by operating their own business. Retail shops, craftspeople, painting operations, computer companies, lawn care businesses and many other original ventures have received funding under the entrepreneurship programs in the past.

The Student Entrepreneurship component provides an interest-free loan of up to $3,000 to help students start a summer business that will create at least one full-time student summer job (minimum of 35 hours per week) and provide the applicant with a valuable business experience. If the loan has been repaid in full by October 15th, you may be reimbursed up to 1/3 of your loan, provided that all Program regulation and requirements have been met.

Who is eligible to apply?

1. Applicants* must be returning to full-time studies in the fall. Priority will be given to students who will be attending a post-secondary institution in the fall.

2. Applicants must be 16 or older. Applicants under 18 will need the signature of a guarantor acceptable to the bank in order to obtain the loan.

3. Because this program is administered provincially, applicants must have established New Brunswick residency or lived in the province during the last six months and be returning to full-time studies in New Brunswick in the fall. Long term New Brunswick residents remain eligible even if they are studying outside the province. The business must be operated in New Brunswick.

4. An individual may have only one Student Entrepreneurship loan outstanding at any time during the program period, either as a sole proprietor or as a partner.

5. Businesses operating on family-owned premises or businesses must be able to demonstrate independence from the family-owned operation. If you are planning to operate an agricultural business, such as raising livestock or cash crops, you must demonstrate a significant measure of independence from the farm on which you are operating.

* Applicants include you and your partner(s), if any. If the business is a partnership, each partner must fill out a separate information form. A partnership is still only eligible for a maximum loan of $3,000.

To be eligible for program financing, your business plan must show the following:

a) applicants must submit a business plan showing added value to the end product. For instance, businesses should look into opportunities that involve selling meat products and/or by-products instead of simple weight gain.

b) cash crops should be restricted to crops that are planted and harvested in one season. It should be new crops to the farm operation and not more of the same type of crops.

What Requirements Are Placed On The Business?

1. Your business must fall under generally accepted definitions of an independent business. That means you should have a large measure of independent control over business operations. Under this criterion, certain types of product distributorships may not be eligible (i.e., where the applicant is essentially a commissioned salesperson for a manufacturer or distributor).

2. Your application must include a business plan that shows how you will be able to pay back the loan by October 15.

3. Your application must display how you will create one or more full-time summer jobs and/or how you will gain business experience on a daily basis (minimum of 35 hours per week).

4. Normally, the loan cannot be used towards the purchase of licensed vehicles.

5. Your business has to be open for at least 6 weeks and all Program requirements and regulations must be met to be eligible for the 33 1/3% reimbursement.

Who Sponsors Student Entrepreneurship Component Projects?

The Student Entrepreneurship component of the SEED Program is a Department of Training and Employment Development initiative. However, it is made possible thanks to the cooperation of the Province's Regional Economic Development Commissions. The Commission in your area will provide you with free help in developing a business plan and completing your application.

The Program is also made possible thanks to the Royal Bank of Canada and the National Bank of Canada.

PROGRAM REGULATIONS

1. Businesses must operate for at least six weeks between April 1st and the Labour day week-end. Your loan must be repaid immediately if you do not start your business within a period that will allow operation for the required time frame.

2. You must submit proof within 30 days that certain business regulations have been adhered to such as registering your company name, buying insurance, etc. Failure to do this may result in the recalling of your loan.

3. Your business has to be open for at least 6 weeks creating at least one full time job (minimum of 35 hours per week) for a student.

4. Your loan must be repaid on or before OCTOBER 15. You may find it easier to make monthly instalments rather than wait for the deadline.

5. A final income statement must be submitted to the Programs Branch of the Department of Training and Employment Development before October 15. You may wish to keep monthly financial statements in your personal files to help you prepare the final statement(s).

6. On any pamphlets or advertising material you may state the following: "This business has received financial assistance from the New Brunswick SEED Program". However, you may not indicate that your business was funded by a bank or other financial institution, nor may you use logos of the bank or the Government of New Brunswick.

7. Students must ensure that proper bookkeeping methods are established, including payroll records, where applicable, cancelled cheques, sales slips, invoices, etc. These must be maintained during the time your business operates. This information shall be made available to the Department of Training and Employment Development for audit purposes.

8. You may be required to submit a brief interim status report approximately four weeks from the time you receive your loan, so that the Department of Training and Employment Development can effectively monitor your venture.

HOW TO APPLY FOR A STUDENT ENTREPRENEURSHIP LOAN

1. The start date of the program is April 1.

2. Assess your talents and decide on the service or product you wish to offer. It is helpful to perform a market study to check demand and to review all relevant by-laws/legislation pertaining to your proposal beforehand. The most important stage of operating your business is often the preparation, so be thorough.

3. You are now ready to begin filling out your application form. Included in this package are:

Form A - Personal Information;

Attachment B - Written Project Description;

Form C - Cash Flow Forecast.

4. Complete all three forms and submit your application to the regional office of the Department of Training and Employment Development. NOTE: Included on the following page is a list of all offices of the Department of Training and Employment Development.

5. If you need additional application material:

- call your regional office of the Department of Training and Employment Development (listed below), or

- go to any one of the following: your college or university student placement centre, Canada Employment Centre for Students, your school guidance counsellor, a Regional Economic Development Commission, or regional office of the Department of Training and Employment Development.

6. Please be sure you have answered, on a separate sheet, all questions contained in the Written Project Description (Attachment B). Your cash flow sheet (Form C) must also be filled out, as this helps to control your business's finances. In a partnership, all partners must fill out a separate Personal Information Sheet. INCOMPLETE APPLICATION FORMS WILL DELAY APPROVAL OF YOUR LOAN.

7. It is highly recommended that you make a copy of your application for your personal files.

8. Please allow at least 2 to 3 weeks for the processing of your application. You will be notified by your regional Department of Training and Employment Development office as to the status of your application. If approved, you will then arrange with the bank to receive your loan, and open the necessary accounts.

9. No applications will be accepted after the Friday of the first full week of July.

10. Any problems or questions? Call your regional Department of Training and Employment Development office.