Self Employment Benefit Program

Eligibility Criteria and Guidelines

ONTARIO SELF EMPLOYMENT BENEFIT PROGRAM

The Ontario Self-Employment Benefit (OSEB) program provides entrepreneurial skills development support to approved participants to help them develop and implement their business plan and become self-employed. OSEB allows participants to concentrate on building a sustainable business by providing them with financial assistance while they receive business advice and support.

PARTICIPANT ELIGIBILITY GUIDELINES

To be eligible for SEB, you must meet the following conditions:

Ø      Are Canadian citizens or permanent residents legally entitled to work in Canada; and meet the definition of an insured individual

 Ø      for whom an EI benefit period has been established, or

 Ø      whose EI benefit period ended within the last 36 months, or

 Ø      is re-entering the labour force after having left it to care for newborn or newly adopted children. The individual must have a benefit period that began within the last 60 months during which they were paid maternity or parental benefits.

As well, an individual who has previously completed within the last 24 months or is currently enrolled in a self-employment program (i.e. provincial or other) is not eligible for OSEB.

BUSINESS ELIGIBILITY GUIDELINES

The proposed business activity must be full-time. This means that the approved participant must devote at least 35 hours per week to developing and implementing the business plan.

The proposed business may be:

Ø      a new business or an existing business in which the individual had no prior ownership; and a business that is suitable for public funding in the opinion of the Ministry.

Ø      seasonal in nature (an individual must devote all efforts full-time to the development and implementation of the business plan for the duration of the OSEB agreement. In some cases, the individual may be engaged in more than one full-time seasonal activity within the agreement timeframe);

Ø      home-based;

Ø      a hobby (i.e. a leisure activity undertaken for pleasure where the primary intention is not to generate income) converted into a business.

INELIGIBLE BUSINESS ACTIVITY

The following are ineligible business activities under OSEB:

Any activity that involves, in the opinion of the Ministry;

Ø      sexual exploitation; illegal activity ; the production of materials that promote hate, discrimination or illegal activity; otherwise promoting hate, discrimination or illegal activity ; proselytizing of a particular religious or political opinion

Ø      business that is partially or entirely based on commission and dependent on a parent company (e.g. real estate agents, insurance brokers, Mary Kay);

Ø      franchise;

Ø      home-based daycare;

Ø      part-time business

Ø      business the applicant currently owns and operates;

Ø      business the applicant previously owned;

Ø      business owned previously by the applicant’s spouse, parent or child where the individual has had significant involvement in the management/decision-making process;

Ø      not for profit organization (i.e. those that do not qualify as a business under the CRA regulations)

EVIDENCE OF A PERSONAL INVESTMENT

Under OSEB, an applicant must provide evidence of a personal investment. The personal investment must be equal to a minimum of 25% of the total amount of financial support for basic living allowance that would be provided to the individual if approved for program participation.

One or more of the following items may be considered evidence of personal investment:

Ø      a current bank statement showing at least the minimum investment in a bank account belonging to the individual;

Ø      evidence of a loan of at least the minimum investment from a bank or other financial institution or a family/friend source and available only through a bank account in the individual’s name or a joint account;

Ø      in-kind contribution including non-monetary items or resources for the business that an individual can contribute or obtain, and proof of ownership and/or a signed statement  showing ownership of equipment or materials to be used in the business and a reasonable estimate of their value from a legitimate source (e.g. car/truck, tools, computer equipment, etc.);

Ø      evidence that an overdraft facility or line of credit of at least the minimum investment has been formally accepted and is available through a bank account or joint account; 

RESTRICTIONS

In order to participate in OSEB, each applicant must:

Ø      meet eligibility requirements;

Ø      attend an orientation session (i.e. group or one-on-one) provided by an OSEB Coordinator and apply for the OSEB;

Ø      complete a self assessment exercise on risks/opportunities of self-employment and personal suitability;

Ø      submit a proposed business concept for review by an OSEB Coordinator;

Ø      obtain a letter of support from the OSEB Coordinator demonstrating s/he has met the suitability criteria and feasibility of the proposed business concept;

Ø      provide evidence of the need for financial support (incremental costs), if required;

Ø      provide evidence of personal investment equal to a minimum of 25% of the total amount of BLA (as per the suitability assessment);

Ø      must continue to be capable of and available for work and continue to complete and submit claimant reports as required if the individual is an active EI claimant;

Ø      complete the Applicant Pre-Screening Questionnaire on Environmental Issues to determine if Environmental Assessment (EA) is required, and;

Ø      complete an OSEB application and submits an application package to the Ministry.

CONDITIONS:

Once the Ministry has approved an individual’s application for OSEB, the participant must:

Ø      develop the business concept into a comprehensive business plan within a reasonable timeframe with the assistance of an OSEB Coordinator.

Ø      obtain a letter of support from the OSEB Coordinator on the feasibility of the completed business plan prior to the implementation of the business plan;

Ø      obtain all required business licenses and permits to proceed with the implementation of the business plan;

Ø      prove s/he is actively engaged in the development and implementation of the business plan for a minimum of 35 hours per week

Ø      Participate in monthly seminars

Ø      submit regular monthly reports that include cash flow actual VS forecast, bank statements, marketing report and a activity report

Ø      follow business direction and/or advice provided by an OSEB Coordinator and/or the Ministry.