The Canadian Youth Business Foundation (CYBF) is a private and public sector funded, non-profit organization that assists young entrepreneurs, 18-34 years of age, to pursue their ambitions of building successful enterprises by providing business assistance in three core programs.

Loan Program: Loans up to $15,000 are available to qualified candidates who may be unable to raise start up funding elsewhere. Candidates must have a feasible business plan, and be prepared to work with a business mentor. A committee of business volunteers from the community, participate on a Loan Review Committee to review the applications for subsequent recommendation and credit adjudication.

Mentor Program: CYBF provides a structured mentoring program called Ment2B ™ for young entrepreneurs who receive a start-up loan. Volunteer mentors are experienced managers and business owners from the community. A training program and resource materials provide a foundation for the mentor and young entrepreneur to establish and maintain a successful mentoring relationship.

On-Line Resources: The CYBF web site is a vital business resource for any young entrepreneur seeking professional advice. This one-stop approach to providing comprehensive and timely information means Canadian Youth Business Foundation  is the business portal offering everything young entrepreneurs need to make their ideas soar.

Eligibility Criteria

• 18 - 34 years old ¹
• Legally eligible to work in Canada (landed immigrants accepted)
• not a full-time student
• has some training / experience relevant to their business idea
• agrees to work with a mentor during the term of obligation (minimum of 2 years)
• produces a complete and viable business plan
• creates or leads to full-time employment for applicant(s)
• no bankruptcies within the last 5 years

¹ If business partner(s) are over the age of 34, then the qualifying CYBF applicant must own 51% of the voting shares of the business.

The Loan program is one of three core programs developed by CYBF. It will provide business support services to Canada's young entrepreneurs and essential start-up credit to youth with good business ideas who would otherwise not have the resources. Loans are available only in locations where CYBF has set up a program in partnership with a local community organization. Currently available across Alberta (see Alberta Community Partner contacts).

Loans up to $15,000 are approved for aspiring young entrepreneurs with a sound business plan, who agree to work with a mentor. Terms are designed to be supportive of a young person during business start-up and in the early years of operation. Applications are reviewed by a team of volunteers from the community. They are guided by their experience and knowledge of the local market, as well as a pragmatic approach to lending which minimizes the foundation's risk and maximizes the micro loan fund dollars. Start-up capital is intended to give young entrepreneurs who are not eligible for conventional financing a head start, and at the same time ease them through the transition to more conventional financing and banking practices.

The pool of funds available in each community where CYBF operates in partnership with local organizations is not unlimited. Therefore, loans will be granted on a merit and need basis similar to a scholarship - to young people most likely to succeed and where the money will make a critical difference to the ability to begin the enterprise.

Loan Program Terms and Conditions: Business plans and financing requirements are evaluated on non-traditional lending criteria. A volunteer Loan Review Committee that consists of people from the local business community reviews each application and if recommendation for approval is given, then the application is then processed through credit adjudication. Loans are unsecured personal loans. In lieu of security, each entrepreneur must agree to work with a mentor for the amortization of the loan and a mentor match is made as a requirement prior to the loan being advanced.

Terms:

• Amortization may be three to five years.
• No principal repayment in the first year.
• Full principal repayment in equal instalments over the next two to four years, with the term dependent 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 prime rates may be obtained from CIBC

Fees:

• Start up fee, $50.00
• Monthly administration fee, $15.00
• These fees represent the actual cost of creating and maintaining a loan account during the period in which the loan is held with the Canadian Youth Business Foundation. These costs include the establishment of a loan account and any and all reporting and maintenance, as required.

Other Conditions:

• A loan will not be advanced until a mentor has been identified and accepted by CYBF
• The loan recipient must work with a mentor for the amortization of the loan.

For information on Community Partners, please access the CYBF website

• Canadian Youth Business Foundation (http://www.cybf.ca)

Related Reading

• E-Spirit National Aboriginal Youth Business Plan Competition
• Young Entrepreneur Awards
• Business Micro Loan Program
• Young Entrepreneurs Info-Guide

More Information

• Canadian Youth Business Foundation

Alberta Contact(s):
Ms. Rachel Rouhana
Business Manager
Canadian Youth Business Foundation
Toll-free (information): 1-800-464-2923
E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Web site: http://www.cybf.ca/