Welcome Community anchors Loan finance workshop – CLT Conference

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:

anne.tunnicliffe@socialinvestmentbusiness.org Mobile 07890 825978

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...

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

surp

lus

surplus

surplus

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 careSettlements

Development trusts

Land trustsLocal 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

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

● 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 0191 261 5200 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 enquiries@thesocialinvestmentbusiness.org

● visit www.thesocialinvestmentbusiness.org or www.communitybuildersfund.org.uk

To discuss/develop your ideas…