Funding Your Social Enterprise Andy Garrett Fund Manager.

Funding Your Social Enterprise

Andy GarrettFund Manager

Kent Community Foundation

• One of 54 Community Foundations across UK

• Funding and supporting projects that improve the lives of local people

• Encouraging local charitable giving and philanthropy

• Connecting local people who care with causes that matter

Kent Community Foundation

Has over 10 years’ experience helping

thousands of local charities, projects and

good causes and has distributed over £15

million

What do you need?

• How much will the enterprise cost to start up and run.

• How much does the enterprise aim to earn.

• DRAW UP A MONTHLY CASH FLOW FORECAST- write down your assumptions.

• Decide what type of funding is best suited to what you are doing

A PLAN

Matching finance to funding need

Secured loan

Overdraft

Unsecured Loan

Patient Capital

Returnable grant

EquityGrant/ payment

Property or asset purchase

Working Capital

Pre-funding, Fundraising Effort

Research & Development

Service Delivery

« ABILITY TO REPAY »

HIGH CHANCE OF REPAYMENT

LOW CHANCE OFREPAYMENT

Kent Community Foundation Funds

The Brook Trust Fund

The Phillip

sFund

• Established with initial funding from Kent County Council

• Aims to support existing and newly created social enterprises in Kent

• Set up primarily as a recyclable loan fund• Must be trading and have clear social purpose and

community benefit• Majority of profits & assets reinvested in business or

social purpose

Kent• Loans from £10,000 to £100,000• There is a potential for 20% of the total request to be

via a grant• Most loans are expected to be repaid over 2-5 years• Anticipated that loans will be unsecured• Must be an incorporated body• Must be operating within the KCC administrative area

and be using the finance to benefit Kent residents.

WE WILL HELP YOU WITH YOUR PLANNING IF YOU WANT IT

Why Borrow?• A business plan is not fighting against others, it

stands on it’s own merit.• For a trading enterprise it is far more flexible than

a grant.• It can prevent mission drift.• Knowing that something needs to be repaid

focuses the mind.• It doesn’t stop you applying for grants, but might

reduce your reliance on them.• Your future in your hands

Example

Total request £20,000 split - £16,000 loan

£4,000 grant

Repayments £333.33pm Repayments £400pm

5 Years

Interest 5% flat £4,000

Fee 4% of loan £ 640

APR 11.5%

4 Years

£3,200

£ 640

12%

Thanks for listening

01303 [email protected]