A Parent's Guide to Frequently Asked Questions

What is a non-interest bearing loan?

A non-interest bearing loan is a loan that has no cost of borrowing associated with it. If your child borrows $500, your child pays back $500.

The Students in Business Program offers loans up to $5,000. Does my child have to borrow the whole $5,000?

No, the Delivery Agent will help your child with their business plan. Students only borrow what is needed. It could be $100, $1,000 or $5,000.

How long does the student have to pay back the loan?

Loan terms are flexible and a repayment date will be set when the loan is issued. Most loan repayments are made within a three-month to two-year period.

Do I have to borrow money to participate in the Students in Business Program?

No. The Delivery Agents - Community Business Development Corporations (CBDCs) promote entrepreneurship and help students better understand their business ideas, offering free advice and coaching. Some students will choose not to start a business and some students will start businesses without a loan.

How does the rebate work?

The Student in Business program is designed to expose students to business and help them acquire skills to run their own businesses effectively. There are several rebates available to promote various components of the Program.

A Mentoring rebate (5% of the loan value) is awarded if the student selects and works with a mentor over the course of their loan period. Mentors are experienced people from whom to get advice, business information, and networking opportunities for their business. The mentor should be a businessperson in the community and they must spend a minimum of 5 hours with the student.

A Training Rebate (5% of the loan value) is awarded if the student participates in training. This training can be in areas such as marketing, bookkeeping, sales, etc.

A student is only eligible for a rebate after they have paid back their loan in full and have submitted a final report.

Does my child have to be returning to school to participate in the Students in Business Program?

Yes, in order to be eligible for the Program all youth must be returning full-time to a recognized educational institution (high school, university, college).

Can I operate the business part-time while I am in school?

Yes, students can operate their businesses part-time while they are in school.

If my child is under 19 years of age, what are my responsibilities if he/she participates in the Program?

When business loans are made, the delivery agents use legal documents such as Letters of Offer, Promissory Notes, and Personal Guarantees. If your child is under 19 and he/she needs a loan to start or expand a business, you are responsible for signing any legal documentation required.

Am I responsible for the loan if my child isn't able to repay?

All students in the Student in Business Program have the responsibility of repaying their loan. The Delivery Agents will work with your child to make reasonable arrangements for repayment. Whether the business performs well or not, you and your child are legally responsible for repaying the loan.

Will cosigning a SIB Loan for my child affect my credit?

It can affect your credit. If arrangements for repayment are not made or honoured, then your credit can be negatively affected. As cosignor of the loan, you are agreeing to assume responsibility of the loan on your child's behalf.