Accessing Business Finance Workshop

February 2014

Derry City Council

Growth Loan Fund (£50m)(DEBT/MEZZ)

Development Fund I (£30m) (EQUITY)

Small Business

Loan Fund(£5m) (DEBT) Co-Fund NI (£16m)

(EQUITY) Development Fund II (£30m) (EQUITY)

NISPO Funds(£17m)(EQUITY & GRANT)

Deal size Up to £250k £500k £2m

Provides Risk Capital funding continuum - from start-up to development capital up to £2m

Invest NI’s Access to Finance Solutions

Funds and Fund Managers

Bank of Ireland NI Development Capital

Fund

Crescent Capital III

Funds and Fund Managers

Small Business Loan Fund

• £5m revolving loan fund launched Feb ‘13. At end Jan ‘14, 53 loans made, totalling over £1m.

• Provides loans of between £1,000 and £50,000 on a typically unsecured basis, at 6%-10% fixed flat interest rates.

• Aimed at Micro, SMEs and social enterprises.

• Start-ups are eligible to apply for up to £15k. Established businesses can apply for up to £50k. Mentoring support is also available.

• Ulster Community Investment Plc (“UCI”) has been appointed to manage this fund (partly delivered through Enterprise NI).

• Further details available at www.nisblf.com

NISPO Funds

• Provides support to start-up and early stage businesses along a continuum known as an “enterprise escalator”.

• Invest Growth POC Fund is a pre-commercial grant fund to establish the commercial potential of a concept. Mini grants up to £10k; standard grants up to £40k. 232 awards made to date.

• Invest Growth Fund invests in early stage businesses. Investment range £50k-£250k. Private sector contributes 30% in any funding round. 29 deals to date.

• Two university funds (£1m in each) providing seed investment up to £200k.

• Suite of support includes “Investment Readiness” and Showcasing events.

• Further details available at www.nispofunds.com

What do funders look for?

• Character & Ability – brief business history and management profile.

• Performance – commentary and historical accounts if available.

• Conduct of Account – evidence of previous facilities respected.

• Requirements – clear explanation of the purpose of the finance and the amount required. A good funding proposal document.

• Serviceability – evidence that repayments can be met.

• Security – what is available?

Finance Vouchers

• Finance Vouchers can be used towards the cost of using external consultants to help businesses prepare a funding proposal.

• Small or medium sized business from either the manufacturing or tradable services sectors with growth potential, can apply for a Finance Voucher.

• The Finance Voucher initiative is managed and administered by Invest NI. It provides support at up to 49%, to a maximum of £4k.

• Cannot be used towards the cost of preparing a grant application or other ongoing accountancy services.

• Further details available by calling 0800 181 4422 or at http://www.investni.com/support-for-business/funding-for-business/access-to-finance-strategy.html