GVOC – Funding Advice Workers Susan Oliphant Head of Operations / Business Development 25 May 2011

Agenda Entrust – background / who we are / what we do Microloan Fund Other programmes: –Investor Forum –Pathfinder –Home Working Fund –Service Network –Business start-up –Mentor Database

Entrust: who we are… Small group of companies, not for profit, limited by guarantee: –Tyne & Wear Enterprise Trust Ltd t/a Entrust Ltd –Entrust Fund Management Ltd –North East Equity Matching Ltd –Street North East Ltd –Financial Inclusion Newcastle Ltd (FIN) –Service Network (North East) Ltd Turnover £2.3m / 25 staff Work across the North East region Money, Markets, People

Entrust: who we work with… Pre-start: individuals thinking about starting up in business Start-ups: those who are “on the journey” Existing businesses: often (but not always) SMEs with fewer than 250 staff Existing businesses that have ambitions to change and grow Existing businesses that are “in pain” but, given the right support, have a future

£15m under management – loans and equity We manage funds; we have our own loan fund (Street North East) Financial packaging – cocktails: business planning and sourcing public / private funding Pathfinder: helping businesses to re-organise and restructure financials Business Angel Network: Investor Forum - established 1994 Money…

–Regional Enterprise Loan Fund –CDFI Pilot –Transitional Loan Fund –Street North East Loan Fund –North East Equity Matching Fund –North East Microloan Fund Funds under management…

Microloan Fund / “JEREMIE” Part of Finance for Business North East “super fund” - £125m Previously referred to as “JEREMIE” –Single Programme –ERDF –European Investment Bank (EIB) - £62.5m loan to be repaid on commercial terms Businesses Supported – 850 Jobs Created and Safeguarded - 7,818 over 10 years INVEST for returns; do not give grants

Microloan Fund - Objectives Increase the creation of new enterprises Improve the survival rates of new businesses Improve the growth rate and profitability of existing micro and small businesses Support businesses where mainstream lending is unavailable Create and safeguard jobs

Microloan Fund – Customer Groups Individuals starting business who face some form of disadvantage (e.g. Unemployment, disability, residence) Individuals starting business who are not disadvantaged but unable to source mainstream finance Existing sole traders and partnerships Existing micro and small limited companies Social (Third Sector) Enterprises

Microloan Fund – Loan Criteria Amounts£1k - £25k TermUp to 3 years Interest Rate6.5% above UK Reference Rate SecurityUnsecured PurposeNormal business requirements

Microloan Fund – Key Figures Loan capital £5m Lending periodTo December 2014 Number of Loans 700+ Output targets –New businesses 400+ –Existing businesses supported275+ –Jobs created & safeguarded1100+

Microloan Fund - Eligibility Located in North East of England Viable but unable to raise funds elsewhere Must not operate in excluded sectors Must be an individual or an established SME / Third Sector organisation

“Retail” Draft CLG Guidance: “Permitted to lend to viable SME retail businesses who are unable to raise all or some finance from private lenders” “Dispensation to support SME retail businesses, particularly on lending, is especially likely to benefit women and members of certain social groups (including but not exclusively BME groups), and likely to help activity in certain economically deprived geographic areas”

“Investment Readiness” “Loan repayment ready” Application Form –Business Plan / Overview of Business –Balance Sheet –12 month cash flow forecast –12 month P&L forecast –Personal budget –Business Assets & Liabilities 3 rd Sector Capacity Fund / North East Enterprise Agencies - ERDF

Investor Forum “Dragons’ Den….with Manners!” – formal Business Angel Network Brings together investment community in the region – high net worths / venture capital funds / those who manage others’ wealth / professional service firms Showcases high-growth, knowledge based companies Presentation events 5-6 times/yr involving 4 or 5 pre-vetted investment opportunities Companies are given 10 minutes to make their presentation followed by a question and answer session Coaching for the event

Investor Forum 17 February 2011: –60 delegates –17 registered business angels; 4 “super angels” –6 Fund Managers –4 private wealth managers In last 12 months: –30 companies have pitched for £14.5m investment In : –Helped companies raise £5.9m

Pathfinder: short-term problems but with potential for sustainable growth – 5 days 100% subsidised (ERDF) Home Working: £1.1m fund to create 360 new home working jobs in the North East - £3k subsidy per FTE Service Network: membership organisation for business to business service providers – not just private sector: –Talent management –Winning new business –Service differentiation –Tomorrow’s world Business start-up Other services:

For more information: Bringing a New Dimension to Business Support