zArchive Aboriginal Youth Business Initiative

Wayne Gray at SIC says ABC cut the funding; so this loan is no longer available...

Settlement Investment Corporation (SIC) is proud to announce the Aboriginal Youth Business Initiative is open for business. Settlement Investment Corporation has been actively pursuing projects for the Métis Settlement youth. Our goal is to increase access to capital and business management services for settlement youth in three areas:

1. to build entrepreneurship interest and capacity;
2. to provide access to small amount of capital on concessional terms; and
3. to provide coaching and mentoring services to youth businesses to ensure high levels of success.

This will assist the settlement youth interested in acquiring their own businesses and entrepreneurs in running their own business.

The primary focus of the program is to reach Métis youth that are out of school and unemployed. The secondary focus is to reach employed Métis youth attending part time education programs or about to leave school.

Eligibility Criteria

The applicant must be:

• A resident Métis settler
• Currently unemployed, attending school or out of school
• Youth is described as a Male or Female who have reached his/her 18^th birthday and no older than 35 years of age on his/her last birthday
• Must have successfully completed the one-day training session on starting a business (SIC to provide Course) Look for workshops in your community
• Must have completed the Self-Assessment Guide (Form provided)
• Must have completed or have completed a satisfactory business plan and must satisfy SIC/Board as to the viability of the enterprise. ( i.e. the feasibility of the venture from a market, financial, technical and management point of view)

Location

Head Office:
The head office of the proposed business must be located within the geographic boundaries of the province of Alberta; however, proposed business activities may be undertaken both on and off settlements.

Eligible Activities

SIC/Board will finance:

• Applicants seeking investments must have as their primary goal the creation of wealth through profits
• The acquisition, expansion, modernization or establishment of business or in some cases, financing be used to defray the capital costs of the same on businesses owned and controlled by a resident youth settler
• Farm loans for the purchase of livestock or equipment

Summary

SIC/Board will not undertake personal loans, loans for household improvements, home mortgaging or any other financing not related directly to the acquisition, expansion, modernization and establishment of a profitable business enterprise.

Financial services  ( Micro Loans)

Rates/Amounts:

• Lending rates of interest will not exceed 8.5% per annum compounded monthly
• Minimum equity requirement of borrowers will not be less than 10%
• Maximum amount of all loans to any one entity or related entities not to exceed  $15,000.00
• Collateral and security will be required for all loans

Conditions of loan agreements

SIC/Board:

• Requires that the borrower take action required to provide the corporation with accurate and timely reports, including encouraging the borrower to take small business bookkeeping course, engage a bookkeeper or otherwise provide for maintenance of adequate financial records; and
• Requires that the borrower agree to accept “aftercare” advice and assistance from a consultant or businessperson approved by SIC/Board and to the best of his/her abilities follow the advice/assistance provided by this consultant or businessperson.

These criteria listed above are for immediate reference only; SIC/Board policy covers the criteria more extensively.

If you have any questions, call the SIC office; the numbers are 1-800-661-9902 or local in Edmonton 780-488-5656.