YOUNG ENTREPRENEUR LOAN

The Young Entrepreneur loan, under the authority of the Board of Directors, has been created to reduce the out-migration of young people towards urban centers.  This program aims at supporting young entrepreneurs from 18 to 39 years of age in the start-up, acquisition, expansion and modernization of their business.  The program promotes the leadership of young people and the development of their social, cultural and economic engagement in our region.

FINANCIAL SUPPORT

Loan
  • Term loans available from $5 000 to $30 000 in the form of financial loans for businesses who qualify;
  • Applicable interest rate is the prime rate of the PRCDC + 3%;
  • Flexible terms and reimbursement;
  • Possibility of 24 months without interest;
  • Possibility of 24 months without capital reimbursement;
  • Maximum amortization period of 5 years;
  • Evaluation of the viability of your business venture and assistance obtaining realistic financing;
  • Information concerning the government and other program services available to SMEs.
Interest is generally paid on the amount used, meaning the amount disbursed by the PRCDC, and not on the amount of the credit line allocated.  The interest rates associated with a line of credit can be variable or fixed, depending on the terms of the agreement between the parties and the PRCDC preferential current rate.

A line of credit may be secured by assets such as real estate, inventory, accounts receivable or other valuable assets as well as general and specific security agreements.

A line of credit cannot be used to acquire or start a business or to pay government taxes.


The Young Entrepreneur loan cannot be used to repay debts or obligations owed to the Government of Canada, the Government of Ontario, or any other municipal/regional government.  Grants, bursaries, or forgivable loans are not available through the Investment Fund loan program.

To be eligible to receive financial assistance, the business must:
 
Business criteria
Be located or plans to be located within the designated boudaries in the United Counties of Prescott and Russell (or in southern Ontario for EDISO loan)
Have a head office registered in Ontario
Demonstrate that it has exhausted all other means of financing, either by refusal of a financial institution or in partnership with a financial institution or other organization
Demonstrate not to offend good morals (not to subscribe to illegal activities or commercial exploitation of sex, religion, and/or politics)
Demonstrate, both the business and the owner(s), that government deductions are up to date
Owner must be between 18 to 39 years of age
 
Viability criteria
Demonstrate commercial viability
Demonstrate that it will contribute to improving the performance and productivity of the business
Demonstrate that, in its good judgment, it presents a reasonable possibility of achieving economic viability
Demonstrate that the proposed business or project will achieve viability and self-sufficiency
Demonstrate the ability to repay all funds advanced to it but the PRCDC in the form of loans or participation in its shared capital
Demonstrate the
 
Employment criteria
Demonstrate that it has the potential to create new jobs and/or maintain them in the PRCDC's designated territories (Prescott and Russell and southern Ontario)
Demonstrate t
Please submit the following documents with you application:
 
Documents to submit with the funding application form (each applicant)
Business registration or articles of incorporation
Identification proof with photo (driver's licence, passport, health card)
Proof of citizenship (for newcomers - if applicable) - permanent residency
Applicant and partner last income tax statement or notice of assessment
Most recent financial statements (if applicable)
Documents to download and submit with the funding application form (each applicant)
Appendix A - Finance ratio
Appendix C - Personal finances of each applicant
Disclosure of personal information of each applicant (to downlaod if more than one owner)

Before submitting an application

  1. Have you read and understood all the eligibility criteria?  Are you eligible for funding according to the criteria?
  2. Do you have all the necessary documents to submit your application?  Click on the following LINK to download the check list of documents to submit.  Once all the boxes have been checked, you will then be ready to fill out the application form for financing.
Click on the following LINK for the online version of the Young entrepreneur loan application.
If the Board of Directors rejects a proposal for financial assistance, the applicant may appeal the decision to the Board of Directors.

If a client requests an appeal, members of the Board of Directors may be invited to attend a meeting with the client in question.  The intention is to have the appeal heard by the required majority of the members.  If the request is subsequently refused during the Board of Directors consideration, the applicant with have no further appeal.