Student Startup Funding
Several dedicated Juniata College alumni donate to a unique Student Seed Capital Fund. Members of the JCEL Board of Directors oversee distribution of these funds to promising student entrepreneurs with the goal of providing experiential learning opportunities. Click the links below to find out more about the different types of funding your startup can receive.
This year's deadline for the NextStep Fellowship will be September 24th.
Next Step Fellowships
Which students would benefit most from the Next Step Fellowship?
The Next Step Fellowship is designed to assist the student with researching their idea for a new, or enhancement of an existing product, service or non-profit, which could serve as the basis for a new business venture or entrepreneurial initiative. Fellowship resources support them as they research their concept, in order to determine its commercial/market viability. When completed the student to complete a full business abstract and is ready to solicit funding.
What is included in the Next Step Fellowship?
The Next Step Fellowship provides student entrepreneurs with resources in three vital areas for business creation - Student Stipend, Technical Support, and Research Capital.
Student Stipend
- Ability to receive $7.25 per hour, for (non-class related) time spent on the concept and business venture development, for up to 10-hours per week.
Support
- Five hours of personalized consulting time with the JCEL/HCBI team - assistance with business abstract, marketing research and locating additional funding sources
- Personal introduction to and interaction with an entrepreneurial mentor
- Connection with professional service providers in accounting, law, banking and insurance
Research Capital
- Up to $500 to support business/product concept research expenses (purchases, long distance, copies, mileage reimbursement, service providers, etc.)
What is the Application Process?
1. Students submit a business abstract electronically to the JCEL Executive Director.
Business Abstract (2-3 pages) should address the following questions:
- Student Entrepreneur(s) Information - name, class year, academic advisers, email, phone and address
- Describe something that does not exist that you plan to create or an opportunity to improve an existing product or service or identify a social entrepreneurship project.
- Who would purchase your product or service or need your effort?
- What makes your proposed product or service better, faster and/or cheaper than your competition (if any exist)?
- As a student entrepreneur, describe your experience and motivation as it relates to your business or social entrepreneurship idea.
- Develop an "Action/Work Plan" detailing how many hours you would spend per week researching your business idea/concept. List step-by-step actions to be taken and an estimate of how many hours it will take to complete each step. Action/Work Plan should be an addendum to the abstract.
Note: Students requiring assistance in developing their Business Abstract are encouraged to contact the JCEL staff.
2. JCEL Staff will review proposal, meet with student entrepreneur and provide staff comments with recommended action to JCEL Seed Capital Committee.
3. JCEL Seed Capital Committee will review staff comments with recommended action and make final decision.
Loans
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 Executive 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.
Equity Investments
What is the Equity Investment?
Students may secure up to a $15,000 equity investment. This investment is made in the form of a loan in which repayment is not required until the students are no longer full-time at Juniata. Repayment with interest is due at predetermined intervals but may be deferred for up to two years beyond graduation, as determined by the JCEL Board. At its discretion, JCEL may elect to take equity/ownership of up to 2% for each $1,000 invested instead of loan repayment. If the student follows the business abstract approved by the JCEL Board and fails to realize profit, the JCEL Board may take any business asset as repayment in full and forgive the obligation of the student entrepreneurs. Return on these investments are used to replenish the Student Seed Capital Fund, to be again invested with future Juniata student entrepreneurs.
What is the application process?
1. Students may apply at anytime.
2. Students schedule a meeting with JCEL Executive Director.
3. Students work with JCEL in developing a business abstract for submission. The business abstract should address the following: product/service, target market, 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 abstract submitted for consideration.
4. JCEL Seed Capital Committee reviews business abstract.
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. JCEL Equity Investment/Loan Agreement executed.