Presentation on theme: "Welcome Community anchors Loan finance workshop – CLT Conference."— Presentation transcript:
Welcome Community anchors Loan finance workshop – CLT Conference
●to explore if you, or organisations you work with, could access our funding for community anchors and health / care / wellbeing projects ●to encourage more take-up of our funds from a broader spread of organisations by March 2011 ●to ensure you have contact details for follow up ●my details: Mobile Aims of workshop
●for community anchors: we can provide large feasibility grants and main investments in new or renovated community buildings of up to 2 million (up to 40% grant / 60% loan) ●for health / care / wellbeing projects and organisations, the funding is mainly loan (up to 10 million) with some grants for start ups ●free business support (consultancy) for all projects that appear investable. Funding Headlines
●we are the fastest growing social investor in the country, managing nearly £400 million ●we help social enterprises that need investment that a bank won’t provide or a grant funder can’t ●we recognise we invest in people and pride ourselves on an approach that works About The Social Investment Business
●lots of definitions (no right answers) ●do you (or organisations you work with meet the definition we use for the funds?) ●typically the organisations we fund are aiming to provide multiple services to residents in the immediate community and wish to acquire / upgrade assets ●watch this space as government consider what types of developments to prioritise Community anchors …
●a meeting space or a base (sometimes called a ‘hub’) which is available, welcoming and accessible to all ●access to seed corn funding, most often small grants funds or community chests “Firm Foundations” 2004 recommended:
●access to support provided by workers with community development skills ●a forum or network that is deliberately inclusive, open and participatory, that is owned by and accountable to the community ●appropriate learning opportunities to equip people for active citizenship and engagement. … and also
●advice and support, learning, volunteering, drop ins, lunch clubs, café, meeting space, office space, facilities for entrepreneurs and groups, campaigning, voice and advocacy, signposting and referral, information and resources, newsletters, befriending, counseling, community events, community fundraising, leisure activities, dance and fitness classes, supported living, and live / workspace Community anchors provide a number of these services:
Community anchors are local... Trading area (sometimes city or district wide) Wider economic and social influence Delivery area for neighbourhood services
Examples of community anchor projects We can fund/invest in projects such as.... Local hubs and community centres Economic development trusts supporting all small enterprises and combating worklessness Asset transfers where proposition is to deliver local services Combined hubs and elements of supported living/housing On case by case review, we might consider projects that are... Housing/retail/workshops Urban farms Economic and social regeneration Museums Green spaces Sports/recreation We can’t consider projects that are.... Wind power Radio stations (where there is no other community activity) Pure leisure/tourism/heritage Single faith/culture Single issues e.g. Young people Moving assets e.g. Trains, boats Pure agriculture / horticulture
Types of investment in community anchors – Model A Investment in asset by The Social Investment Business Services Surplus
Model B Investment in asset from The Social Investment Business Asset 1 Outreach service Service hub Services Service hub Services Asset 2 surplus
What The Social Investment Business can fund Health and well being hubs Healthcare and well being projects Supported living Supported work placements including nurseries, horticulture, forestry Residential care Settlements Development trusts Land trusts Local resource centres Neighbourhood centres Community anchors Community centres
●does anyone think they could access the funding? What for? ●does anyone know anyone else who could access the funding? What for? Stock take …
In order to be eligible, an organisation must: ●be seeking to become more financially independent and less grant dependent through activities that have community relevance and social value ●be based and working in England ●operate for the benefit of a defined neighbourhood Criteria for investment in community anchors (1)
●work inclusively within their community, including marginalised groups ●show how they empower, or plan to empower, their community through multi-purpose community development and stimulating community led action ●have a track record of delivering to the community it is based in Criteria (2)
●be locally controlled with local people or representatives of local groups making the spending, staffing and other decisions around priorities ●multi-purpose - providing or hosting a number of different activities and services. Criteria (3)
Three stages of support for community anchor applicants Initial development of applicant Feasibility of building development Main investment in building Ongoing Support from The Social Investment Business Intensive support from specialists Our in house Business Support team Support from Community Alliance* By 31/03/2011 * Development Trust Association, bassac and Community Matters By 31/12/2010
We fund as many applicants as we can Eligible Viable Robust (risks are reasonable) Unbankable and compliant with State Aid implications Prepared to take on a loan
●enables things to happen now, especially where large sums of money are required ●encourages long-term thinking and business planning ●provides flexibility, it is money to use as you choose ●enables you to do something different for the beneficiaries you serve ●can be re-invested many times Why loan finance?
Loans are not income streams, but financial enabling tools. Loans can be used for: ● managing cash flow ●kick starting new services / projects ●organisational growth and development ●building costs and purchasing buildings ●enabling new contracts and trading activities Why loan finance?
●not competitive ●no deadlines – rolling programmes (8-12 week turnaround) ●revenue funding and capital ●can fund individual organisations or consortia ●no project too large ●any area of health or social care or community anchor organisations Key facts about the funds
You must… ●present a cash flow forecast with well argued rationale re income forecasts ●demonstrate business /enterprise mindset ●have up to date and controlled finances ●have buy in from your Board and supporting governing documents ●have the financial capability to track a loan ●have identified risks reasonably Assessing investment readiness
●we take an all-round view to looking at the organisation’s potential to move forward ●therefore before we invest, we look at: governance, financial capability / controls, market awareness / market position, operational delivery ability, leadership / ambition, credibility / reputation, track- record, structures / policies and procedures Assessing your ability to repay
●dialogue based process ●if your proposal is promising, we assign a Senior Investment Analyst who will: ●carry out due diligence checks (assesses risk) ●construct a deal ●visit your organisation ●present your proposed deal to our investment committee for sign off How does the application process work?
We can provide free consultancy support if: ●you have an ambitious proposal with growth potential that needs development ●you have some key gaps to plug before we can lend (eg, accounting systems) ●you experience difficulties after we make the loan (we help re-plan / re-finance) What about support?
●call to talk to a staff member of The Social Investment Business ●speak to your local contacts at DTA, bassac or Community Matters ●send a brief (2 sides A4 max) proposal to ●visit or To discuss/develop your ideas…