April 30, 1996 Banks put trust in ‘high risk’ generation by Earle Gale Don’t be alarmed if the banks start throwing money your way. According to David Hofs, CIBC’s public affairs Officer, it’s something you’ll see a lot of in the future. Hofs said the banks now realize that while Gen Xers tend to be short on cash, they’re often big on _ideas. In the past, Hofs said, the Gen Xers’ lack of collateral meant they had little chance of a start-up Joan for a small business. “But, on April 9, the CIBC, | along with Royal Bank, set up a scheme, similar to | Britain’s Prince’s Trust, +and made an initial $7 million available for such | high-risk loans. _ “It’s supposed to be for people who have a good _ idea and the conventional system can’t help them,” Hofs said. | Prince Charles, who gave his name and support F for the original scheme in Britain eight years ago, was on hand last month to unveil the Canadian Youth Business Foundation. The Foundation is.a flagship for the banks, and more are expected to come on board in the future. It offers them a chance to be seen investing in ACTIVITIES Semext Oversmwmes! : Sioctonamets acess Bee er eee or tte BAKER Vd CHL REIN. Tie saree y oon yee mens hee Sg SERRE Od XG BeNOR BEBE SAREE. TEE ERGO ee ne ene Swe Rees wives wan AtRees ead Nowe Sane. neti: ney ahatoateyens any tvhponeserngn p.sraieer fsavas Sprborte a. eee PRE K Re wacko, eed segue wore rapanet vowed nie wad Dakraset Besass ESR SOS ne ts cot | Precdor ins bok Peeehe con ool siete res bo thew Meenasneee soye ane, aan } DIN Geeedsr SoS TEE AION, ee ioeas tanec coer ear enticed eee manny De Se PAREOY oeoeD 2 Sx xara. KER GRY ENORLOEE CHORE ‘eens VEN Be Cedege to prermnt wecdonge ant geckhic sealing. Gen Xers’ lack of collateral meant they had little chance of a start-up loan for a small business course. Canada’s youth and the fight against unemployment. Under the scheme, the banks will make loans of up to $15,000 available to péople aged between 18 and 29 who would not normally qualify for a loan. The borrowers need no collateral, instead they provide a verbal declaration of their intent to repay the loan. They will also need to have a viable business plan, a mentor (who is proven in the business community), and have already com- pleted an approved business training The Foundation expect their loans will help to start more than 5,000 small businesses throughout Canada during the next five years, and are predicting a 70 per cent success rate (meaning 70 per cent will still be in operation after the loan has been repaid). Hofs said, if the prospective botrower cannot suggest a mentor, the bank will find a volunteer from the business community who will be available to offer help and advice. If you have a good business idea and want to get ee et involved, you can apply for the loan directly, and get more information, over the Internet (http// www.cybf.ca). But you might have to wait until you finish your studies; the scheme is not available to full-time students. Hofs said the Internet address is another of the innovations of the scheme. It is the only on-line business service in Canada aimed specifically at young people. It will double as an application point for the loan and an “exchange for infor- ...the CFS is worried that people “If somebody makes it work, then that’s great,” he said. “But I think it’1] mean more bankruptcy among young people.” But Hofs disagreed. He said the loans are a high risk to the banks and it’s likely 20-25% of the businesses started with the loans will fail with the loans written-off as bad debts. But he said, “the risks are outweighed by the returns.” He said it’s a great way for people with a good idea and not much money to mation” for budding will be given money up front, but get their dreams off entrepreneurs, Hofs said . It will also feature access to on-line business advisors and help-groups. But Dave Kappele, provincial organizer for the Canadian Federation of Students, warned people against getting too excited. He said the CFS is worried that people will be given money up front, but little business advice afterward. Kappele said the banks are unlikely to really care if the businesses work or fail, as long as they can get their money back. He said they will also be benefiting from the favorable publicity gained by making loans to young people. little business advice afterward. ty. the ground. Canadian Youth Business Foundation has started making loans in Ontario and will spread west over the next few weeks. Hofs said he expects the first loans to be made in the Vancouver area “in the next couple of months.” th — Tenative deal for faculty days before BC election by Paul Andrew After months of speculation and sporadic job-action, a tentative agreement has been reached between the Post Secondary Employers’ Association, which represents 22 colleges in BC, and the Joint Union Caucus, which represents faculty _ members from the College-Institute Educators Association. But not all problems between the two groups have been hammered out yet. Sources at the PSEA say that if an agreement has not been finalized by May 15, negotiations facilitator, James Dorsey, will be recalled to settle any outstanding problems. There are 22 institutions and 26 local unions affected by the outcome of the facilitator’s recommendations. CIEA President, Ed Lavalle, is optimistic the agreement will be well received by the membership. “Tt combines fairness in compensation with the government’s need to have © education and training affordable and accessible,” Lavalle said. BC Premier, Glen Clark, says the agreement is proof that the NDP’s recent focus on the post-secondary school system has helped make access to college easier. “This agreement is good news for students....It helps ensure that my government’s ‘Commitment to Youth’ (a space for ey qualified student) is met.’ Clark, who began a string of announcement/press opportunities - almost six weeks ago by announcing a freeze on post-secondary tuition, followed this comment Tuesday by announcing British Columbians will go to the voting polls on May 28 to decide the next premiere of BC. “The people of BC will have to Side between cuts to health and education at the hands of the Liberal government, or protection from those cuts by voting for the NDP,” Clark said from the steps of Government House in Victoria Tuesday afternoon. PQ ‘immerse’ at DC by Paul Andrew Most students were relieved when they found out tuition fees would be frozen this year, and if student enrollment at Douglas is any indication, the BC Government has managed to persuade the same amount of students as last summer to _ that you go by.” take advantage of the less hectic pace on campus this semester. Debbie Crowley, student records coordinator, says so far it looks like there will be almost the same amount of students registered as there were last year. “We usually get about 3,095 students, and most are from BC,” Crowley said. “But we also have some students from Quebec doing an exchange program called the Summer Language Bursary Program, which is French students coming to BC to speak only English,” Crowley explained. “It’s like an English immersion program.” Crowley also pointed out that there will be some students from the full-time nursing program who will also be on campus this summer. “Most students will go from May to August,” Crowley said. “But the nursing students will be doing seven-week, short ” courses, Roy Daykin, manager of accounting information, says the student count is not necessarily an indication of how busy it will be on campus this summer. “T think this summer has about as much activity as last The total being paid by international students for a three credit course is $706.50. Canadian students taking college course in B.C. will pay $160. *,...Nothing has changed for the Canadian students’ summer,” Daykin said. But sometimes, one student will take five courses, and then you’ll have five students taking one course each, so it’s really the seat count taken in each class Daykin also said even though other Canadian students coming to BC will enjoy the freeze in tuition, international students will be paying $10 more per credit. The total being paid by international students for a three-credit course is $706.50. Canadian students taking college course in BC will pay $160. “Nothing has changed for the Canadian students,” Daykin said. If there are any changes for BC students this summer, it will be more community college space in the form of the Douglas College Pinetree campus in Coquitlam, which is slated to open this September. Brad Barber, from the communications and marketing office at DC, says there will be 1200 full-time equivalents (a student with 9 or more credits) at the Coquitlam campus, so this summer will be a key transition period for Douglas. Douglas College’s Pinetree Campus was recently singled out by the NDP Government as one of the colleges included in the $10 million provincial funding, which is earmarked to establish more space for post-secondary students in British Columbia.