Raising loan capital for the

1

• Raising loan capital for the
• Coach House Trust

2
Background

• Occupational, educational employment
  opportunities for adults recovering from
  addiction, mental health problems, physical
  disabilities learning difficulties
• Arts crafts
• Community bring-site
• Market gardening
• Green waste management composting
• Renewable energy projects

3
Business Needs

• Balancing funders needs and reporting
• Challenge of donor led funding
• Time remit restricted funding
• Working towards self sustainability
• Need to work outside of charitable remit
• Able to build up reserves
• Earn unrestricted funding

4
Development Strategy

• Commercial green waste management site
• Establish trading sister organisation
• Partnership with private investor
• Lease site fit for purpose
• Tender for E. Dunbartonshire Council contract

5
Challenges

• Managing Risk
• Getting the Board on side
• Taking calculated risks
• Raising Start up Capital
• Working with Funders
• State Aid de Minimus ruling
• Raising Loan Capital

6
Raising Loan Capital

• Commercial banks
• Community Development Finance
• Criteria
• Demonstrate credible business plan
• Provide detailed information
• Be able to repay the loan
• Fees Interest Rates

7
Applying for Funding

• Criteria
• profits will not be distributed but retained for
  the continuance of their good work
• organisations are unable to raise funding, either
  in total or in part, from normal commercial
  sources such as Banks
• the project has a clear social purpose which will
  make a real difference to the communities in
  which they operate
• The project can demonstrate that the social
  impact is likely to be long lasting.

8
Applying for Funding

• the small print..
• Geography
• Funding sources
• Can you borrow?
• How much how long
• What is the loan for
• assets
• working capital
• bridging finance

9
Pre Application

• An initial assessment of whether you meet
  criteria
• Assists the planning process highlights any
  areas needing further research or work carried
  out.

10
Pre Application

• Brief description of organisation, including
  purpose, main activities, number of staff, size
  and involvement of board.
• Current sources of funding their contribution
  to project
• Describe the project. Include details of
  location description of neighbourhood number
  and type of units, total development cost,
  anticipated completion date, long term ownership
  and management plan, community support
• Give loan details Amount, term, start date,
  source of repayment and security

11
Credit Application

• Business plan
• 3 year cash flow forecast repayment plan
• Audited accounts
• Constitutional documents
• CVs for operational staff and board

12
Business Plan

• Introduction organisational background
• Governance Management
• Nature of Project
• Lending Viability Safety
• Audited accounts
• 3 years projections
• Security
• Risk Appraisal SWOT analysis
• Contingency Planning

13
Learning

• Aim high - But understand manage risk
• Be credible Have a robust business plan
• Communicate
• Be prepared to be flexible
• Be prepared for cultural change
• Build stakeholder relationships
• Have a Plan B