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Enterprise Loans for Young People Wednesday 18 April 2012.

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Presentation on theme: "Enterprise Loans for Young People Wednesday 18 April 2012."— Presentation transcript:

1 Enterprise Loans for Young People Wednesday 18 April 2012

2 Pilot Basics Pilot duration 28 May 2012 to 31 March 2013 Intent A pilot for a national programme Address market failure in access to start-up finance for young people (aged 18-24) Government provides capital & administration costs -You provide support & innovation Impact assessment Assessing demand, network capability and default rates For every individual receiving a loan, document proof that 3 others receive support for business / employability

3 Fund Management Company Pilot Design Delivery Partner Global Partners Loan Administration Website Marketing Standards Admin Costs Links to Education Mentoring & Advice Access to loans Publicity for scheme Young People with Business Ideas A strong business plan Lots of hard work! Access to Education Finance

4 Fund Management Company Oversee distribution and collection of funds Maintain records of recipients for long-term evaluation and; Liaise with global partners *We are not looking for expressions of interest for this role today Pilot Design

5 The Fund Manager provides.. Finance for loans to young people Website Branding Support for loan administration Administration cost Guidance on standards of mentoring Best practice dissemination Fund Manager

6 A manageable number of pilot delivery partners who are selected to provide onward lending Responsible for administering the lending and repayment process and for providing associated support to deliver sustainable businesses Pilot Design Delivery Partner

7 Delivery Partners provide.. Mentoring (F2F, Online, Phone) Advice on business plan The decision on whether to lend or not Access to loans Information about skills & FE providers Publicity for scheme and use of branding Data for evaluation Delivery Partners

8 We are interested in any in offer of help to the programme from corporate, or other, organisations, such as: –Support for the fund manager / delivery –Marketing –Access to banking –Discounts –Other innovative offers Global Partner Global Partners

9 England only Business loan, personal liability Loan average of around £2,500 across loan book (with flexibility) Periods from 3 to 5 years Up to 12 month optional repayment holiday Interest rate of RPI + 3% Loan Design

10 Initial distribution of £9m for end users £9m provides capital for onward lend and administration costs Administration costs to be outlined in expressions of interest Costing

11 Bids by delivery or global partners invited: 18 April 2012 Deadline for offers: 9 May 2012 Independent panel assesses offers: May 2012 Grant offer letters: from 21 May 2012 Lending commences from: 28 May 2012 Schedule

12 Thank you Remember to submit your bid, for receipt: 12.00 noon 9 May 2012

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