HomeMy WebLinkAboutCAO-17-017 - Waterloo Region Small Business Centre - Agreements with the Prov of Ont for Summer/Starter Company Plus Programs
REPORT TO:Finance and Corporate Services
DATE OF MEETING:May 29, 2017
SUBMITTED BY: Chris Farrell, Manager, Small Business Centre 519-741-2200 ext 7294
PREPARED BY:Chris Farrell, Manager, Small Business Centre 519-741-2200 ext 7294
WARD (S) INVOLVED:All
DATE OF REPORT:May 1, 2017
REPORT NO.:CAO-17-017
SUBJECT:City of Kitchener, Waterloo Region Small Business Centre, Agreement
with the Province of Ontario re: Summer Company Program
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RECOMMENDATION: That the Manager, Waterloo Region Small Business Centre, and
the Executive Director, Economic Development,be delegated authority to execute
recipient grant agreements to the satisfaction of the City Solicitor for the Starter
Company Plusand Summer Companyprograms.
BACKGROUND:
On March 20, 2017 Council authorized the City of Kitchener to enter in to 2 agreements with the
Province of Ontario for the Waterloo Region Small Business Centre to deliver the Summer Company
and the Starter Company programs. The programs provide training, mentoring and the opportunity to
receive a grant for up $5,000to entrepreneurs starting and expanding a business.Both programs are
funded by the Province of Ontario.
REPORT:
On March 20, 2017 Council authorized the City enteringinto the Provincial funding agreements to
deliverthe Starter Company Plus and Summer Company Programs (CAO-17-011 and CAO-17-012).
Recipients will need to sign recipient grant agreementswith the City and Council resolved that the
Mayor and Clerk be authorized theserecipient grantagreements.
Thevolume of recipient grant agreements is expected to exceed 85 this year. If the Province continues
this program similar agreements may need to be executed every year. Due to this high volume,
delegatingauthority to staffto execute the recipient agreements will create efficiencies in disbursement
of the grant funds to approved applicants in a timely manner.
Summer Company is an 8 to 12 week programfor students applying for a grant of up to $3,000,
applicants must be students age 15 – 29and returning to school.
Initially students completeanon-line business plan that is evaluated and scoredby the Manager
and Business Advisor, each applicant is interviewedbefore acceptance to the program.
Approved student applicants receive an initial grant of $1,500for startupexpenses.
Successful completion of the program includes; completing12 hours of training, 6 hours of
mentoring, a weekly log of activitiesto demonstrate they are working 35 hours a week on the
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
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business,and a weekly report all income and expenses. Provided the student fulfills the
requirement of program they receive a final disbursement of up to $1,500.
Starter Company Plus is a 12 to 24 week program for adults applying for training, mentoringand a
grant ofup to $5,000. Applicants must be: age 18 orover, not in school or employed full time and are
starting, expanding or purchasing a business less than 3 years old.
Initially the individual submits an application outlining the business concept. The Manager and
Business Advisorinterview applicants to evaluate the business concept, experience, andskills
before being accepted to participate in training.
Training participants complete 6 training modules(24 hours)over 5 weeksandmust submit a
final business plan, within 4 weeks of completing the training, to apply for the grant.
The business plan is scored on nine critical components by the Manager, Business Advisor and
at least3volunteer Grant Review Committeemembers.
Committee members make recommendationsfor approvalor resubmit. The Manager has final
approval on all grantsupto $5,000.A Recipient Agreement is signedand the first disbursement
is 75% of the approved grant. Grant recipients continue to meet with the Business Advisor and
Volunteer Mentors for 12 weeks.
Successful completion of the program includes;completion of 6 training modules, proof of use
of the grant, monthly cash flow financial reports, monthly meeting with mentorsandan activity
log to demonstrate they are workingat least 35 hours a week in the business.
Provided the recipient fulfills the requirements of the program they receive a final disbursement
up to 25% of approved amount.
All volunteers are experienced professionals or business owners from the community. Volunteers sign
a Code of Conduct, Confidentiality and Conflict of Interest form. All recipients sign a Consent and
Release form.The Recipient Agreement for both programs outlines the terms for termination or
default.All grant recipientsrecognize the Grant is taxable under the Canada and Ontario Income Tax
Acts. A T4A slip will be issued to the Recipient of the award.
The Small Business Centre submits, interim and final, written and financial reports to the Province.
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
Strategic Priority:Strong & Resilient Economy
Strategy: #2.2 Support the attraction, retention and development of existing and new
industries within the regional economy working in collaboration with the economic development
corporation for Waterloo Region.
Strategic Action: # 26Make It Start
#27 Make It Grow
FINANCIAL IMPLICATIONS:
None
ACKNOWLEDGED BY: Jeff Willmer CAO
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