Redhotcurry - Money. Small Business Minister unveils £10.5M Funding Package

Multi-Regional
1. Business in Prisons
(£455,000)
Over the next two years BiP plans to hold 500 awareness sessions involving 7,600 prisoners, with an expectation that around 425 will follow through to start businesses on release. This Building on the Best II proposal will create an "in-house" fund to finance around one third of the business start-ups assisted through the expanded business support programme. Loans are expected to average around £3,000. Along with revenue support from the Phoenix Development Fund, it will also enable BiP to expand its work to cover 11 out of 19 prisons in the East Midlands, 7 out of 9 in the West Midlands and all 13 women's prisons nationally.

Regional
NORTH WEST:
2. Preston Money-Line
(£318,895)
Round 3 support will enable this newly established Money-Line to provide both personal and enterprise finance (from different sources), similar to Portsmouth Area Regeneration Trust and other Money-Line models. Targeted at the Preston Objective 2 wards - where most have a higher than average number of single parents, and a number where the ethnic minority population exceeds 20%. The PML enterprise focus will help people from start-up stage, through survival to early expansion, with particular services for social enterprises and ethnic minority businesses, including working with the Preston Muslim Forum to set up a Shariah compliant financial product.

3. Cumbria Asset Reinvestment Trust
(£450,000)
A new organisation formed on behalf of regional and sub-regional partners to establish a Reinvestment Trust for Cumbria. The North West RDA sees CART as a sub-regional flagship for Cumbria through its Rural Regeneration Cumbria (RRC) action zone initiative. CART will have two distinct operating divisions:

A CDFI
A Community Land Trust
CART will deliver enterprise finance & support to start-ups and expansions, with particular focus on rural diversification enterprises - e.g. in tourism, culture, arts & heritage. Ex-offenders and those with CCJs who find it difficult to raise enterprise finance will also receive consideration. Loans are expected to be in the £500 to £5,000 range with some larger loans up to £20,000.

4. Bolton Business Ventures
(£962,000)
This "Building on the Best" aims to consolidate and extend BBV's community and enterprise activity across the whole of the North Manchester sub-region in line with NWDA's strategy and in conjunction with Business Link North Manchester. With a thematic (ethnic and women into business and social enterprise) focus, this BoB will:

(a) Enable BBV to target more disadvantaged wards with community enterprise finance for start ups, existing small businesses and social enterprises. (Helping the latter move on from a grant dependency culture);
(b) Help move more people out of the "grey" economy;
(c) Provide a holistic package of tailored business support and finance to entrepreneurs who have growth potential but cannot get conventional finance.

5. The Enterprise Fund
(£785,700)
Part of the Manchester Enterprises Group, and an NWDA strategic partner, TEF targets the disadvantaged areas of central/south Manchester, Tameside, Stockport, Trafford and Salford. This BoB intends to develop TEF’s range of financial products and extend into new and hard to reach markets over the next two to three years. This includes:

Islamic finance
Women returners
Military leavers
Refugees
African Caribbean communities
Urban disadvantaged wards in Cheshire
Small and medium sized equity products

NORTH EAST:
6. Five Lamps - Thornaby on Tees
(£365,000)
The Five Lamps Organisation is currently developing a new strategic direction to ensure sustainability across all of its activities. Working with other regional and sub-regional partners, Five Lamps envisages its CDFI growing from its initial base in near Stockton-on-Tees, to cover the more deprived communities in the wider Tees Valley conurbation. Five Lamps is also a lead player in a consortium bid being submitted to the Tees Valley Partnership for single programme funding, which is seeking to encourage and enable enterprise and entrepreneurship in the most disadvantaged and hardest to reach communities. Within this, Five Lamps targets unemployed people into business and other small business start-ups.

YORKSHIRE AND HUMBERSIDE:
7. Goole Development Trust
(£470,000)
Round 3 support was required to help cover additional demand/costs as a result of the Countryside Agency and Yorkshire Forward contracts, generating extra services and need for capital from enterprises around Goole, reflected in a near 50:50 urban/rural split for loans advanced to date. GDT is the local deliverer of Business Link Humber services to start up and small businesses in Goole, providing loans as last resort finance. Along with encouraging figures for additional leverage into supported enterprises, the funding from Yorkshire Forward and the Local Investment Fund, coupled with Phoenix Round 3, will help consolidate GDT's base towards sustainability.

8. North Lincolnshire Council
(£595,394)
In addition to the Phoenix Fund Round 2 support, NLC has supported the loan fund operational costs with ERDF and the Council's own resources, and bolstered the loan fund 'pot' further with SRB capital of £250,000. While NLC is meeting its Round 2 remit, the Round 3 support is dependent upon the CDFI now being at arm’s length from the Council in order to engage wider (private sector) stakeholders. NLC has taken great strides to promote the Fund, only providing loans as last resort finance. Business Link Humber provides Business Improvement Consultants to deliver an integrated business support package to assisted businesses.

9. Into Business Scheme
(£76,000)
A recipient of Round 1 support, IBS has operated since 1996 helping unemployed people in Calderdale and Kirklees into self-employment. Through the scheme, unemployed people with fledgling business ideas get access to an intensive period of business support and guidance. During this period they are able to commence their business while still receiving benefits. Individuals that successfully launch their business on a commercial basis have access to business loans under the scheme, which averages around £1,000. Follow-up guidance is undertaken with borrowers as part of IBS’s loan management & monitoring procedures. IBS will be using Round 3 support to build on its success so far and work with other providers of finance (e.g. West Yorkshire Enterprise Agency), to provide greater access to such finance for its target groups.

EAST OF ENGLAND:
10. Women’s Employment Enterprise Training Unit
(£147,381)
With Round 3 support, WEETU plans to increase Full Credit Lending Circle activity to cover the whole of Norfolk and roll out into other rural parts of the East of England region. The East of England Development Agency (EEDA) is supportive of WEETU and that its bid builds on the DTI's "Strategic Framework for Women’s Enterprise" report, as well as EEDA's strategic activity 15. WEETU is also marketing its Full Credit product in other parts of the country.

11. Suffolk Reinvestment Trust
(£211,000)
The creation of SRT will enable Suffolk to benefit more directly from the ESF EQUAL regional project being led by BL Herts. Initially sponsored by Suffolk County Council, SRT will become autonomous and separately managed from the Council. SRT will have particular emphasis on encouraging growth of social enterprises and co-operatives, especially in the disadvantaged rural communities of Suffolk. Other SMEs will also be covered, although joint working with Norfolk & Waveney Enterprise Services will provide the support in this and other loan management fields. Supported by EEDA.

12. Norfolk & Waveney Enterprise Services
(£490,000)
NWES is a well-established Enterprise Agency and is active in other IMD wards across the region, with a good track record in delivering business support, including financial packaging. It is creating a subsidiary CDFI to work in conjunction with EEDA, the Business Links of Suffolk and Norfolk, local authorities, WEETU and the Banks. Linking with SRT, NWES will be targeting rural communities (where many banks have closed branches) and the more disadvantaged wards in Norfolk and Suffolk. Within this will be a focus on start-ups and early stage businesses, including a business training, development and mentoring package. Supported by EEDA.

LONDON:
13. East London Small Business Centre
(£1,460,000)
This Round 3 bid covers three ELSBC loan funds and it is looking to build on the success of these. ELSBC is still running the initial loan funds it started 15 years ago and thus its track record gives credence to its ability to sustain such loan funds. The Funds are:

The Muslim Loan Fund, to be extended to cover more of Redbridge, Barking & Dagenham, Havering, Newham and Tower Hamlets
The "GoEast Ventures Fund", the Centre's first equity fund has gained momentum and deal-flow, which could potentially outstrip supply.
The "Short Term Clothing Loan Fund" that ELSBC operates for the benefit of the many small clothing manufacturers in their target area.

14. The Environment Trust
(£48,000)
The Environment Trust supports micro-credit loans (£500-£4000) through peer groups via the East End Micro-credit Consortium. The Fund offers loans to financially excluded individuals working or seeking to set up businesses in east London and aims to act as a catalyst for the development of further community finance products. Previously supported under Rounds 1 & 2 with Phoenix Fund Loan Guarantee, revenue and capital.

15. HBV Enterprise
(£165,000)
HBV has been operating loan funds since 1985 and has a long track record of sustainable loan fund management through both public and private sector funding. HBV was supported in last September’s first tranche of Round 3 (£964,000) and has hired additional Business Adviser support to expand its Fund into Barnet, Enfield and Haringey. However, due to the additional - and substantial - deal flow created, HBV estimates its existing revenue support will be used by mid 2004. HBV expects to make 90 loans worth £700,000 in 2004-06 and that about 50% of its deals will involve BMEs. The LDA believes that HBV is a good CDFI exemplar.

16. London Rebuilding Society (LRS)
(£156,500)
Previously supported by the Phoenix Fund, LRS required additional support to take the management of its loan fund through to 2006, and to widen its scope beyond its current social enterprise brief to include more ethical businesses in general.

17. One London
(£830,000)
One London is a pan-London CDFI that has a maturing loan book. The support will be used to support and build on its existing operations, enhance its post-lending activities and that of its Phoenix Fund loan guarantee product.

Part of this Phoenix Fund award includes £250,000 revenue support toward its development of a Wholesale Fund, primarily using CITR as a means of raising capital to on lend to retail CDFIs. One London is expecting to lend a minimum of £5,000,000 and a maximum of £10,000,000 over a 3-5 year period.

18. Head for Business (HfB)
(£50,000)
HfB is located in south London and operates in the creative industries sector. HfB wishes to continue its existing support and development work and also to refer relevant clients to existing CDFIs who would then make the loans as appropriate. The Phoenix Fund support will better enable HfB in managing its portfolio relationships with the CDFIs, and help it become an efficient broker that can deliver investment ready clients to the CDFIs.

19. Urban Partnership Group (UPG)
(£162,000)
UPG is located in west London and operates in the social enterprise sector. UPG aims to use the Phoenix Fund to develop its proposed model for new social enterprises, harnessing grass roots interest and involvement, and working with LRS (already in receipt of Phoenix Fund capital finance for on lending to social enterprises), to secure the financial package required by the nascent social enterprise.

20. North London Chamber & Enterprise Credit Union
(£500,000)
NLC & ECU is located in North London, and supports SMEs in its disadvantaged areas. Working in conjunction with the Enfield Enterprise Agency to increase deal flow, NLC & ECU will provide the back office management of the loan fund.

SOUTH EAST:
21. Portsmouth Area Regeneration Trust
(£80,565)
Already in receipt of previous Phoenix Fund capital for on lending, PART is extending its geographic scope of operations to cover some IMD wards in Southampton and requires additional Phoenix Fund support. A robust and forward looking business plan aims for a sustainable Fund operation and client track record in a difficult market. (PART is a Money Line type operation providing loan finance for both personal, as well as enterprise, finance). SEEDA (the RDA) believes PART to be an exemplar CDFI of its type, and is supportive of PART becoming one of the region’s sub-regional CDFIs.

SOUTH WEST:
22. Centre for Employment and Enterprise Development
(£100,000)
CEED was established in 1987 but only started its own loan fund in 2002, when it received £268,000 capital support under Round 2. Its Round 3 bid will extend its scope and structure, to include ex-offenders and social enterprises and will be used to employ Fund outreach advisers who will also market the Fund and increase deal flow. CEED is part of the Bristol Means Business consortium and regarded as a good partnership operator by the RDA.

WEST MIDLANDS:
23. Aston Reinvestment Trust
(£575,000)
ART is one of the leading CDFIs in the country. ART requires Phoenix Fund support to fund a new finance product development service/company, which will provide services for a two-year pilot period. ART is working towards self-sustainability through a combination of:

Churning repayments from its existing portfolio;
New inward investment attracted by CITR status;
Bank loan finance, using its accredited status for CITR eligible arrangements;
Programme-related investment by charitable foundations;
Targeting local public sector funds if available.
ART hopes this activity will improve both quality and amount of deal flows and post-start help to clients, reducing ART's risk and improving both the sustainability of ART and the growth potential of businesses in its targeted disadvantaged areas.

24. Coventry & Warwickshire Reinvestment Trust
(£656,000)
A new CDFI with a well-researched and developed business plan, CWRT primarily arose from a need for access to affordable enterprise finance in the Coventry, Warwickshire, and Solihull sub-region. CWRT aims to take a syndicated approach with its larger loans. The need for CWRT centres on the growing number of private individuals and small businesses that feel excluded from the products and services being offered by mainstream financial institutions. CWRT aims to on-lend money at reasonable rates to enterprises and entrepreneurs who are, or believe they are, excluded from mainstream lenders. The potential client base will be start-up enterprises or those with enterprises who are considered too high an investment risk by banks.

25. The Marches Rural Reinvestment Trust
(£391,800)
The Marches Rural Reinvestment Trust will serve SMEs in the geographic rural region of Herefordshire, Southern Shropshire and Western Worcestershire, and hopes to expand the scope of its operations, for example, to include all of rural Worcestershire. These areas suffer from a lack of access to finance and specialist advice. MRRT will support the growth of small rural business and business start-ups. It is intended that the financial provision will fit where there is insufficient mainstream provision.

Further information can be found on the DTi website.

Top