What is the start-up loan?

Loans are intended for student businesses that are ready to begin delivering products or services and need a small amount of working capital to begin operations. Students generally may borrow up to $2,500, but higher requests will be considered.

What are the benefits of the start-up loan?

The start-up loan presents an attractive alternative to a bank loan because it does not require parents or guardians to co-sign.

How is the loan paid back?

Interest begins to accrue at a fixed rate of 6% when the loan is made.  After a six month grace period, payments are generally made over a period of 18 months, but may be carried up to two years past graduation.  Some negotiation of terms is possible as determined by the JCEL BOD.

What is the application process?

1. Students may apply anytime.

2. Students schedule a meeting with the JCEL Director.

3. Students work with JCEL on developing a business/operations plan for submission. The business plan should address the following: product/service or non-profit purpose, target market or constituency, competition, marketing and sales strategy, operations, management team and projected financial statements (including income statement, balance sheet and cash flow). Note: Students may be encouraged to engage in a Next Step Fellowship depending upon the completeness and viability of the business plan submitted for consideration.

4. JCEL Seed Capital Committee reviews business plan.

5. Student presents overview of plan to JCEL Seed Capital Committee or JCEL Board - students may work with JCEL in preparing for presentation.

6. JCEL Seed Capital Committee or JCEL Board makes funding decision.

7. If approved, a JCEL Loan Agreement is executed.