1. Microfinance Ireland Lorna Coleman

2. Microfinance Ireland  Set up by the Government to provide loans to newly established or growing microenterprises, with commercially viable proposals that do not meet the conventional risk criteria applied by commercial banks.  MFI is ‘additional’ lending which would not otherwise be provided by banks. Banks remain the primary and dominant supplier of finance to microenterprises.  Applicants should have a viable business plan and be able to demonstrate that they have been refused conventional bank credit.  Loans to top up bank credit may be available in certain cases where it is clear that the business would not go ahead without MFI 2

3. 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 3

4. Loans  Loans from €2k to €25k (average loan size €16k at present)  Term three years  Interest rate is 8.8%  Loans will not be provided where venture capital or grant aid is more suitable 4

5. 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 with the entrepreneur to assess; skills, character, viability of the plan and commitment to the business –A financial commitment by the entrepreneur although not mandatory is desirable –Completion of a ‘start your own business’ course and / or working with a mentor will be an advantage. 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 5

6. A good Business Plan Promoter’s experience and skill set to operate the particular business Realistic cash flow projections for 3-years Evidence of repayment capacity Personal financial commitment Evidence of good market research Breakdown of how funds are to be utilised Unique selling points should include the following essential elements: 6

7. LEO / Microfinance Ireland Loan Product  Loan at 1% Discount compared to Direct Channel  Application assistance by LEO to client  Provision of mentoring as required by loan approval  Local Loan application Assessment with final decision resiting with Microfinance Ireland

8. Service Commitments  Assistance by LEO as required by loan applicant  Transparency with Client on Applications potential  Local assessment signed off by Head of LEO  8 Day turnaround of completed applications at LEO level  2 Day turnaround of LEO assessment by Microfinance Ireland and sign of by CEO.

9. Go to your LOCAL ENTERPRISE OFFICE Complete an application form –A business plan –Three years cash flow projections Supporting Documentation LEOs will in the first instance assess (within 8 days) MFI will finalise the loan offer letter etc within 2 days HOW TO APPLY 9

10. Application forms available from 10 www.localenterprise.ie or www.microfinanceireland.ie