Business Start-up Funding – Ontario Self-Employment Benefit (OSEB)






  • The Ontario Government has introduced a new program that is intended to assist job seeking Canadians who wish to start their own businesses. The program is called the Ontario Self-Employment Benefit (OSEB) and it is provided to unemployed Canadians who possess a viable business proposal and wish to make it into a reality. This program applies to those individuals who have a business concept but require financial assistance and professional guidance to assist them throughout the initial phases of the business start-up process.  This program is mainly directed towards those who have recently become unemployed through no fault of their own and do not have any previous self-employment experience or training.

    Ontario Government Funding Assistance

    If the applicant is accepted; the OSEB will provide the individual’s weekly salary and the funding necessary for small enterprise counselling and training. The amount of the individual’s weekly earnings will be similar to that which was provided by the Employment Insurance Regular Benefit program. The salary received will depend on the wages of the individual from their previous employer. The amount will be equal to or above the rate of provincial basic living allowance ($423/week).  The program’s assistance will last for 42 weeks, during that time there will be a 10 week course provided where participants will develop their business plan with the guidance of trained professionals.  In order to be eligible the participant must invest at least 25% of the amount provided through government funding into the business.

    Applicant Eligibility for Government Funding Ontario

    • Must be currently receiving Employment Insurance Benefits, or
    • Currently unemployed and has received EI benefits within the past 36 months, or
    • Currently unemployed and re-entering the workforce after maternity or paternity leave
    • Lacking previous entrepreneurial experience or training
    • Has a viable business proposal or concept

    Those who have already made a detailed business plan or have begun their business start-up process (purchased software/supplies etc.), before being accepted into the program will usually not be considered eligible by the OSEB Coordinator.

    Apply for Small Business Funding Grants

    For those who are interested in additional information on the application process for other start-up Entrepreneurial Programs like Ontario Self-Employed Benefit, please contact  Mentor Works for other government funding for business opportunities.

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About The Author

Bernadeen McLeod

With considerable expertise in government funding, both on a federal and provincial level, Bernadeen has secured grant funding and low interest loans for small-medium size business owners in Southern Ontario. She likes to play to win, and understands the importance of cash flow and margins. She enables her clients to succeed through her passionate belief that there are no boundaries or limits to what can be achieved. Add to your Google+ Circles.

  • Sara

    I am trying to start online mentor facilitated tutoring program. I need help as I have never started a successful business before. I am currently on OW. Is there any program that can help me get started. Cheers. “Sara”

    • http://www.mentorworks.ca/ Ryan Weaver

      Hi Sara,
      Sounds great. As a parent and former instructor I have a sincere interest in what you are doing. I sent you a quick response via email. Thanks for stopping by our blog!

  • kelly

    I would love some further guidence to see if i would qualify to start my own nursing agency as well as teaching the public service worker postion. I would like to teach the course then employ my students.

    • http://www.mentorworks.ca/ Ryan Weaver

      Thank you for the comment Kelly! I sent you a response by email.

  • Christina

    Hi there,
    I have recently gone off maternity-leave and now I’d like to open my own spin/cycling studio. Are there any programs or funding opportunities that I could look into?
    Many thanks!

    • http://www.mentorworks.ca/ Ryan Weaver

      Hello Christina,
      The majority of grant funding programs -probably not. However, there are a multitude of resources including the availability of free support services and loans from not-for-profit organizations. It will also depend on where you live -i.e. Northern Ontario has very generous programs for start-ups. Download our government funding checklist first: http://www.mentorworks.ca/startups/

      Best of Luck!

    • http://www.mentorworks.ca/ Ryan Weaver

      Thanks for stopping by our blog Alexis! I sent you an email requesting a bit more information about your business so that I can point you in the right direction.

  • Lesley

    Hi there,

    I am currently unemployed and recieving unemployment insurance but would like assistance with a small business idea that I have. I have no previous business training and would very much like an opportunity to apply for this program. If you could please send me an application for this program I would very much appreciate it.

    I can be reached at ****************.

    Thank you for your time,

    Sincerely,
    L

    • http://www.mentorworks.ca/ Ryan Weaver

      Hello Lesley,
      My colleague Lea reached out to you with the information you requested. Best of luck to you!

  • S & L

    My wife and I have taken the OSEB orientation program on 28/Feb/14. To continue in the course we need 25% equity each totaling $4442 each or $8884.This is in cash and/or in-kind services. Looking to see if there is anyplace I can apply for these equity funds?

    • http://www.mentorworks.ca/ Ryan Weaver

      Hello S & L,
      Thank you for stopping by our blog!

      I just so happens that we will be posting an article on start-up funding tomorrow (March 4th, 2014). Check back at http://www.mentorworks.ca/blog/ and let me know if you have any questions. Unfortunately, aside from a few special circumstances, you will need some equity in order to start a business -contrary to the idea of many that all you need is a good idea.

      If you download our government funding for startups checklist you can find out more information about what kind of support you can seek out developing your business model, and starting up your business. (www.mentorworks.ca/startups) There won’t be any programs that will supply you with the equity you are looking for as a grant, but some business loan services do exist.

      Best of luck!

  • Jay

    I recently started a new business on top of my regular job because I believe my current job is coming to an end, lack of business. I am trying to build up my new business to carry me full-time but it is difficult to do outside of normal business hours and part-time. I have been paying UI for decades and never used it. I would like to make use of my employment insurance to subsidize me while I get my business up and running, is this possible?

    • http://www.mentorworks.ca/ Ryan Weaver

      Hi Jay,
      Thanks for stopping by our blog, and congratulations on your plan to start a business. OSEB is a little different from collecting EI. There is an investment requirement, (I think its around $5,000) and you won’t be able to find a grant or loan to take care of that sum -as many people have inquired about this. If you require assistance we do offer more information through our Funding Insider subscription. http://www.mentorworks.ca/funding-insider/