CBDC Youth Loan
Highlights
This program is designed specifically for young entrepreneurs like you in Atlantic Canada. It offers competitive interest rates and flexible repayment terms to help you start, expand, or modernize your business. Whether you need funds for start-up costs, fixed assets, or working capital, this loan can provide the financial support you need.
What You Get:
- Demand and term loans
- Equity investments
- Loan guarantees
Additional Benefits:
- Training and business management support to ensure your venture starts on the right track.
- Seasonal and year-round businesses qualify, giving you flexibility in your business operations.
By being approved for this loan, you can secure the capital necessary to bring your innovative ideas to life, create jobs, and contribute to your community's economic growth. The application process is straightforward, making it easier for you to qualify and get started on your entrepreneurial journey.
Financing Details
Type of Financing: Loan
Repayment Terms and Interest Rates:
- Competitive interest rates tailored to your needs.
- Flexible repayment terms to suit your business plan.
Eligible Expenses:
- Business startup costs.
- Modernization or expansion expenses.
- Fixed assets and working capital.
- Leasehold improvements.
- Franchise purchases.
- Acquisition of assets from a previous business (must be at arm’s length and at or below market value).
Ineligible Expenses:
- Funds cannot be used for personal expenses.
- Cannot be used for businesses that negatively impact existing area businesses.
Fees:
- No specific fees mentioned for application or processing.
Qualifications
- Must be a youth borrower aged 18-34.
- Business must be located in rural Atlantic Canada.
- Eligible for business startup, modernization, or expansion.
- Seasonal and year-round businesses qualify.
- Loans may cover start-up costs, fixed assets, and/or working capital.
- Leasehold improvements and franchise purchases qualify.
- May be used to acquire assets of a previous business, provided the transaction is at arm’s length and the assets are bought at or below current market value.
- Eligible borrowers may be a sole proprietorship, a limited company, or a partnership (majority control must reside with the new entrepreneur).
- Business operations must not negatively impact existing area businesses.
Business should have a reasonable expectation of economic viability and contribute to employment creation and/or maintenance in the community.
Disqualifications:
- Business operations that negatively impact existing area businesses.
Description
The CBDC Youth Loan is designed to help your business grow. If you are between 18 and 34, you can access up to $150,000 to start, expand, or modernize your business. This loan comes with competitive interest rates and flexible repayment terms.
You can use the loan for:
- Start-up costs
- Buying fixed assets
- Working capital
- Leasehold improvements
- Franchise purchases
- Acquiring assets of a previous business
The loan can also cover the cost of business management and other training to ensure your venture gets off to a strong start.
This program aims to create and maintain jobs in Atlantic Canada, making it a great opportunity for your business to thrive while contributing to your community.
Program Steps
Gather Necessary Documentation: Prepare the following documents to support your application:
- Business plan
- Financial statements (e.g., income statement, balance sheet)
- Personal identification (e.g., driver's license, passport)
- Proof of age (18-34 years)
- Details of intended use of funds (e.g., quotes for equipment, renovation costs)
- Any other relevant business documents
Complete the Application Form: Obtain and fill out the application form for the CBDC Youth Loan. Ensure all sections are completed accurately.
Submit the Application: Submit the completed application form along with the gathered documentation to your local Community Business Development Corporation (CBDC) office.
Attend an Interview: Be prepared to attend an interview with a CBDC representative. This may involve discussing your business plan, financial projections, and how the loan will benefit your business.
Review Loan Terms and Conditions: Once your application is reviewed, you will receive the loan terms and conditions. Carefully review these terms, including interest rates, repayment schedules, and any associated fees.
Sign the Loan Agreement: If you agree with the terms and conditions, sign the loan agreement. This formalizes your acceptance of the loan and its terms.
Receive Loan Funds: After signing the agreement, the loan funds will be disbursed to your business account. You can then use these funds for the approved business expenses.
Begin Repayment: Start making repayments as per the agreed schedule. Ensure timely payments to maintain a good credit standing and relationship with the CBDC.