1. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Manchester Agenda 20XX FIN-EN 14 March 2014

2. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Welcome and Introductions The Business Bank FIs in 2014-20 Programme in the UK Local Impact Funds 2014-20 Regulations and Impact on FIs Agenda

3. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu North West of England North West Economy was worth £122.9bn in 2011 (ONS) Population of 6.9million (Census 2011) 251,420 businesses in 2011 (ONS) 5 Local Enterprise Partners (LEPs) 5 Enterprise Zones 43 Local Authorities 11 Universities

4. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu The North West

5. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Financial Instruments 2014-20 in the UK

6. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu FIs 2014-20 Programme UK committed to supporting FIs in the next programming period Build on the existing JEREMIEs and JESSICAs and establish new funds Three northern English regions have a strong track record of using ERDF backed VCLFs

7. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Mid-Term Review Commissioned review of English JEREMIE funds Establish large funds Availability of pre-match funding provided by EIB Fund of Funds model Flexibility to re-size funds

8. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Businesses Seeking Finance

9. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Role of Finance in Investment Package

10. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Change in Business Performance

11. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Future Successor Funds LEPs have committed to using FIs to deliver finance to SMEs Ex-ante appraisal needs to completed Collaboration across boundaries Minimise risk of a hiatus in investment activity

12. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu FIs in programmes JEREMIEs Smaller loan funds including micro Co-investment funds including business angels Targeting specific areas – Rural (EAFRD) – Social Enterprises (ESF)

13. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Local Impact Funds Department for Communities & Local Government Managing Authority, England

14. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Local Impact Funds : An Overview ‘Local Impact Funds’ direct investment into local areas to increase jobs and growth, grow a social economy and support social entrepreneurship Local Impact Funds can deliver ‘place based social investment’. They: – Combine wrap around business support with growth investment. – Connect EU, national and local supply with local demand for finance. – Support local economic and public services strategies. Be locally driven, flexible and responsive to need and context.

15. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Local Impact Funds : An Overview Provide a tailored package of support and finance for charities and social enterprises at all stages, from start up to sustainability and growth. Build on existing local infrastructure and support, drawing into one place an appropriate blend of national and local actors. Support social economic growth anywhere in the world bringing in a range of interested parties.

16. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Why are Local Impact Funds Needed? Growing demand across the UK from charities and social enterprises for finance and support. Survey undertook by SENW in 2012 showed that; – 40% of social enterprises in the Northwest are based in the Liverpool City Region – 71% were expecting to see growth in the next 12 months – 89% were expecting to see growth over the next 5 years – Over 63% of the organisations surveyed thought they were investment ready – However 73% were still accessing grants – Access to finance was stated as one of the major obstacles to growing their business.

17. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Liverpool City Region (LCR) Impact Fund LCR Impact Fund is a pilot fund launched in January 2014. Partnership between the Adventure Capital Fund (ACF) and Social Enterprise North West. £2m fund which has been funded 50% ERDF and 50% ACF. Aimed at Social Enterprises in Liverpool that are seeking financial solutions to their growth. Provide loans of between £50k-£250k to Social Enterprises in the LCR.

18. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Outputs/Results 135 jobs created 135jobs safeguarded 27 investments 20 businesses with improved performance All loans will be above the EC Reference Rate Create legacy fund for the Liverpool City Region Liverpool City Region (LCR) Impact Fund

19. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu 19 Liverpool City Region Impact Fund Aims of the Fund support social enterprises in the Liverpool City Region to enable them to develop, grow and increase their economic impact the fund will help social enterprises achieve financial sustainability maximise social impact by making investments in good quality organisations that aim to achieve a positive and profound change in their communities maximise economic impact by safeguarding existing jobs and support the creation of new jobs.

20. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu 20 Impact Funds 2014-20 Going forward LEP’s are keen to implement in the next programme with all 5 LEP’s from the Northwest allocating funds. Evaluation will be carried out at the end of the project. assessment of fund set up, launch and application process assessment of investment process final assessment of the fund once closed to applications with emphasis on the establishment of further Local Impact Funds in the 14-20 programme Wider legacy large Liverpool City Region Impact Fund will be created further Local Impact Funds will be established in other areas local investors will play an important role and replace ERDF

21. Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu Website: www.fin-en.eu www.fin-en.eu E-mail: info@fin-en.euinfo@fin-en.eu 21 Questions