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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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
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

11. 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
Send completed applications with supporting documentation direct by post to
Microfinance Ireland
Jefferson House
Eglinton Road
Donnybrook
Dublin 4.

12. Application forms available onlineOr