Succession Financing for Youth
Non-Governmental Organizations
Last Verified:
2007-10-26
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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.
CYBF's Succession Loans must
meet the same criteria as the Start-up Loans, with one
exception:
For Succession
Loans only, the
youth has until the end of the fifth year of
operation to attain 51% ownership in the Company financed by
CYBF. (Under normal Start-up criteria, the youth must have 51%
ownership at inception.)
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
Has until
the end of the fifth year of operation to attain 51% ownership
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
New Brunswick 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/