Start-up Financing for Youth
Non-Governmental Organizations
Last Verified:
2007-10-23
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More Information
The Canadian Youth Business Foundation (CYBF) is a national charity providing
start-up mentoring, financing and business resources to help youth start
their own successful business.
The CYBF provides business start-up loans up to $15 000. Loan
repayments of three or five years are available.
Eligibility Criteria
- Between 18-34 years old
- Eligible to work in Canada
- Produces a complete and viable business plan
- Has been in business, fully operating, for less than
12 months
- Lives or opens the business in the community which is
offering the CYBF program
- Has some training / experience related to their
business idea
- Work with mentor for a period of two years
- Has a business that creates full-time sustainable
employment for the applicant
- Must hold at least 51% voting share in the business
(if a partnership)
- Not a full-time student
- Loan proceeds may NOT be used for the refinancing of existing debt
Partnerships
If the business is a partnership, and only one partner meets the CYBF age
criteria he/she must hold at minimum 51% of the partnership and meet all other
CYBF criteria and be subject to the CYBF application process. If all partners
meet the CYBF age criteria, then all are subject to the CYBF application
process. If any partner is a minority shareholder and is over the CYBF age
limit, they are not subject to the application process.
Incorporated Businesses
If the business is incorporated, the applicant must be the majority
shareholder, having at least 51% of the voting shares and be involved in the
day-to-day management of the business. The applicant must also meet CYBF's age
and other criteria. If the business is incorporated and there are two or more
shareholders and not one person holds the majority of the shares, then the
shareholders who meet the CYBF age and all other criteria must hold the majority
of the voting shares and are subject to the same application process. Any
shareholder who meets the CYBF age criteria must be subject to the CYBF
application process.
Summary
Start-up Financing Loan Terms
- Amortized over 3 years if loan is $7 500 or less
- Amortized over 5 years for loans over $7 500
- Interest-only payments in the first year
- Principal repayments are made in equal monthly installments together with
interest, over the remaining two to four years, depending on the amount
borrowed
Interest Rates
- First year, CIBC prime rate plus 2%
- Second year, conditional on timely payments, CIBC
prime rate plus 1%
- Third and subsequent years, conditional on timely
payments, CIBC prime rate
- Current interest rates may be obtained from CIBC
Fees
- $50.00 CYBF loan administration fee
- $10.00 CYBF monthly administration fee
Quebec Contact(s):
See National Contact.
National Contact(s):
Canadian Youth Business Foundation
Suite 1410
100 Adelaide Street West
Toronto, Ontario
M5H 1S3
Fax: 1-877-408-3234
Toll-free (information): 1-800-464-2923
Web site:
http://cybf.ca/contact-us/