Young entrepreneurs starting a business will have greater access to $15,000 loans with a new infusion of $200,000 in funds from the Canadian Youth Business Foundation (CYBF). This money adds to the $1.25 million that has already been committed by the province.

"This money will help to provide the financing, mentoring and training necessary for our youth to achieve their business goals and build a strong future right here at home,” Premier Lorne Calvert said.

Loans of $15,000 each will be available through the Youth Opportunities Unleashed (YOU) program. One is administered by the YOU by way of the Regional Economic and Co-operative Development committee, while the other will be a new partnership with the CYBF.

“The two programs complement each other: the CYBF program is a loan for an entrepreneur’s start-up and operating costs; the YOU program is a loan for the entrepreneur’s capital expenditures,” said Marilyn Day, Director, Investment Programs, Regional Economic & Co-operative Development.

Both programs will connect young entrepreneurs with mentors who can advise them on how to be success in their endeavors. The mentors are assigned by the Business Mentorship Institute (BMI).

"Mentorship has proven effective in increasing the success of business," Business Mentorship Institute executive director Barb Cox-Lloyd said.

YOU loans

YOU loans are managed by Saskatchewan’s 239 small business loan associations (SBLAs). If necessary, SBLAs have the discretion to increase the amount of a loan.

To qualify for a YOU loan you will need to present a complete and feasible business plan. Plans are submitted to your local small business loan association (SBLA) and must include a three-year financial projection.

You will also be asked to complete:

• a loan application that includes a demand promissory note
• a general security agreement, and
• an application fee

For more information visit http://www.recd.gov.sk.ca/SBLA/YOU/YOU.asp.

CYBF loans

To qualify for a CYBF loan you must be**:

• Between the age of 18-34 (and not be a student)
• Eligible to work in Canada
• A new business owner: you have been in business for less than a year and have a complete and viable business plan
• Create full time employment for yourself in your business
• Own at least 51 per cent of your business (if part of a partnership)
• Live in or open your business in a community that offers the program
• Have some training or experience related to their business idea
• Agree to work with a mentor for the loan term (three to five years)

** CYBF program website (http://www.cybf.ca/entrepreneurs/)

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