Ottawa Community Loan Fund – Youth Small Business Loans

ByMaurice

Description:

A special focus on Youth has been made possible through a partnership with Futurpreneur Canada. The Youth Small Business Loans is designed for young entrepreneurs aged 18 to 39.

Comments on Funding:

  1. Funding is up to $60,000 in start-up financing.
  2. Low Interest rates.
  3. Flexible 3–5 year repayment schedules.
  4. No principal payments in the first year.

Eligibility:

Applicants must:

  • be over 18 and under 40 years old;
  • be eligible to work in Canada;
  • have some training/experience related to your business idea;
  • agree to work with a mentor for the first two years of the loan term;
  • produce a complete and viable business plan;
  • open the business in Ottawa or Eastern Ontario (with exceptions);
  • have a business that will lead to full-time sustainable employment for themselves;
  • It has been at least 5 years since applicants discharge if they have been bankrupt;
  • Loans are approved for new businesses (less than one year) only.
  • Network or multi-level marketing businesses are not eligible.
  • For a partnership, the principal or general partner must meet the age criteria and all other owners under the age of 40 will also be subject to the Futurpreneur application process.
  • If the business is incorporated, they must be a majority shareholder, having at least 51% of the voting shares, and be involved in the day-to-day management of the business.
  • If the business is incorporated with more than two shareholders and no one person holds a majority share, the shareholders meeting the age criteria must collectively hold the majority of the voting shares and be involved in the day-to-day management of the business.

Documentation Needed:

Applicants must provide the following requirements:

  1. Proof of identity (driver’s license, passport or similar photo identity document);
  2. Business plan including a two-year cash-flow projection;
  3. Two References (business or academic contacts only);
  4. If applicable, business registration document.

About the author

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business. Click here to learn more about Moe’s background and how he can help your business.

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