Microfinance Ireland Micro Business Loans Presentation to Tipperary Enterprises in partnership with Tipperary LEO

Department of Jobs Enterprise and Innovation Initiatives for SME’s Action Plan for Jobs Department of Jobs Enterprise and Innovation Initiatives for SME’s Banks Credit Review Office Microfinance Ireland LEOs Partial Credit Guarantee Scheme Independent review of Bank declines Micro-Enterprise Loan Fund launched October 2012 First-Stop-Shop micro-enterprise support structure

Microenterprise Loan Fund Scheme Designed by Government to provide loans to newly established or growing microenterprises across all industry sectors with commercially viable proposals that do not meet the conventional risk criteria applied by commercial banks. Not intended to replace any current bank lending – Banks continue to be the dominant supplier of credit Requirement for a Bank decline of Loan being abolished

Definition of a Microenterprise? Less than10 staff & turnover and/or Bal Sheet < €2m Estimated to account for over 90% of businesses in EU and Ireland May be a start up or an existing business

Loan Features Our flexible business loans are designed for micro-enterprises that, under normal lending criteria, are unable to obtain loan facilities from their bank. We provide – Loan Size Term Interest Rate Security Flexible Terms Co-Funding Purpose of Loans Sectors Borrower Loans between €2k-€25k Terms up to 5-years (3-years working capital / 5-years capex) 8.8% APR fixed interest rate (discounted by 1% for LEO referrals) Unsecured Moratorium / interest only / phased drawdowns / bullet repayments *on a case-by-case basis Co-funding with banks welcome Working capital/purchase of equipment/set-up costs/Marketing All industry sectors provided for Sole Trader / Partnership / Limited Company

Microfinance Ireland Supporting the Government’s Action Plan for Jobs Business Activity To Date 1250 jobs supported €8.5m approved over 500 micro-enterprises 60% approval rate 60% start-up businesses / 40% existing businesses

Assessment Criteria MFI will assess a loan application based on a number of criteria; A realistic business plan including cash flow projections Proven business models with prospect of near term cash flow The number of new jobs and social impact An interview (may be by phone) with the entrepreneur to assess skills, character, viability of the plan and commitment to the business Adverse credit history / absence of credit history will not preclude a loan provided there if full disclosure and evidence that debts have been dealt with honourably

LEO - Microfinance Partnership As part of the Action Plan for Jobs Joined up thinking LEO supports the client / MFI lends First Co-Branded LEO / MFI Product launched September ‘14 Microfinance do the administration of the loan LEO’s screen the application Unified decision making – local assessment, local intelligence Offers additional financial support to the LEO client base

LEO / Microfinance Ireland Loan Product Loans through the LEO network get a 1% discount Application assistance for LEO clients Provision of mentoring as required Local application Pre-screening Final assessment decision and risk rests with MFI

Supporting Documentation Start-Up Business Existing Business MFI Application Form Business Plan to include - - Cash flow projection (3-years) - Summary P&L (3-years) Promoter(s) CV 4. 6-mts personal Bank stmts * Tax Clearance Certificate required for drawdown In addition to 1 – 4: Recent Management A/Cs Latest Certified Accounts 6-mts business Bank stmts Aged Debtors/Creditors List

How to apply for a Microfinance Loan LEOs (Local Enterprise Offices) or Direct To Avail of the 1% discount on interest rate or To get assistance with the application process Contact your local LEO office www.localenterprise.ie Send completed applications with supporting documentation direct by post to Microfinance Ireland Jefferson House Eglinton Road Donnybrook Dublin 4. www.microfinanceireland.ie

Application forms available online www.microfinanceireland.ie Or www.localenterprise.ie