STAGE 3: GROWING YOUR BUSINESS
If you are an existing CYBF Entrepreneur between 36 to 60 months of operation and your business requires additional funding to grow and expand, CYBF can help you! We now offer expansion financing of up to $10,000. For complete details please consult with your local CYBF Community Partner.
Basic Eligibility Criteria for CYBF’s Expansion Financing Program:
- Between the ages of 18 to 34 (must not have reached your 35th birthday prior to the date of the application)
- Available to CYBF businesses who have been in operation between 36 to 60 months from the date of the CYBF advance (no funding beyond the 60th month of the original loan disbursement - clients who paid off their loans are also eligible)
- Work full time in the business
- Legally eligible to work in Canada
- Executive Summary of business plan to include the following:
- Description of expansion project. For example; introduction of automation, new market development, launch of a new product, new contract proposal (increase inventory), quality certification as in ISO, etc.
- Operating plan, that clearly indicates how our loan funds will be used.
- Market opportunity and competitive analysis
- Marketing plan
- Accrual cash flow forecast for 2 years that reflects a positive position
- Demonstrate the viability of the existing business as well as the projecting profitability of the expansion project
- All Quarterly Reports as of January 2006 must be submitted. (This applies to clients whose loans were disbursed on or before this date. New clients whose loans were disbursed after this date should submit Quarterly Reports for all quarters following their disbursal quarter.)
- Loan payments for your initial CYBF loan must be up to date
- Loan proceeds may NOT be used for the refinancing of existing debt
Partnerships:
For a partnership, the applicant/s who meets the age criteria should have at least 51% of the voting shares and be involved in the day-to-day management of the business.
Incorporated Businesses:
For incorporated businesses with more than two shareholders and no one majority shareholder, shareholders who meet the age criteria must collectively hold the majority of the voting shares, be involved in the day-to-day management of the business, and take direct responsibility for the liability.
Loan Details:
Loan Terms
- Amortized over 51 months
- Interest-only payments in the first 3 months
- Principal repayments are made in equal monthly payments together with interest, over the remaining 4 years (48 months)
CYBF will add any outstanding loan balance (if any), to the new Expansion Financing Loan and re-amortize for a maximum term of 48 months
Interest Rates
- First 3 months, monthly payments of interest only at CIBC prime plus 2%
- Remaining loan repayment amortized over 4 years (48 months) as follows:
- First year, CIBC prime rate plus 2%
- Second year, conditional on timely payments, CIBC prime rate plus 1.5%
- Third and forth year, conditional on timely payments, CIBC prime rate plus 1%
- Current interest rates may be obtained from CIBC at http://www.cibc.com/ca/rates/index.html
Fees
- $15.00 CYBF monthly administration fee
- $50.00 CYBF loan administration fee