Startup Assistance
Initiatives available through LEDP to assist Micro Enterprise Startup
Community Time Bank
The Community Time Bank offers person to person contact between individuals and groups and enables them to avail of expert advice from professionals in such fields as Accountancy, Legal, Marketing, Insurance etc. They can avail of this service through the L.E.D.P. who will in turn put them in touch with experts who have generously donated their time free of charge.
This worthwhile service involving highly qualified people is in constant demand, and those who have availed of the service speak very highly of it. Besides removing the cost of what can be a major expense for new operations just starting out, the advice and guidance that they are getting at the critical start-up stage for new enterprises, is proving very valuable.
At present we have approximately 80 individuals in the bank with a total of 2500 hours donated. The total number of successful matches since its inception is 1,500. The value of the Community Time Bank as a resource is approximately €250,000 per annum.
The Community Time Bank is also available to Community and Voluntary groups. The service has been used to enhance the capacity of groups to deliver their programmes more effectively.
Enterprise Development Loan Fund
In 1998, despite an apparently reasonable supply of loan funds / grant aid available from a number of sources, the Board of LEDP decided that it would set up an Enterprise Development Loan Fund.
The Loan Fund exists to help those people who were first time starters or had no financial track record or who because of their circumstances were regarded by agencies as high risk and were having difficulty in gaining access to commercial bank funds to start up new ventures.
The objective of the fund was to provide interest free finance where a project was deemed worthwhile and the promoter could not access funds commercially and in this context to act as a lender of last resort.
For enterprises that comply with the conditions set down by the L.E.D.P., loans are made available to help projects through the start-up period. These loans are designed to assist applicants and projects which meet normal banking guidelines.
The loans are presently interest free and are for a maximum period of 3 years and are subject to a limit of €12,700. The fund is generated by donations from some state agencies and by private donations from local companies and people.
The total fund raised in Limerick is currently €500,000. The fund is backed on a euro for euro basis by First Step, giving a total fund of €1 Million. All loan applications receive assistance from the Community Time Bank. This fund is confined to Limerick City and County
Ex Offenders Release Programme
In 2001, we were approached by the Education Unit in Limerick Prison to see if we could assist prisoners who were showing a willingness to start up their own business on release. To date, we have assisted a number of ex offenders in business start-up by way of advice and loans from the Allen Lane Foundation Fund.
In conjunction with the Bedford Row Family Project, we have funded a brochure which is distributed to all prisoners on release giving them all relevant contact details for Social Welfare, Medical Assistance, Housing, etc.
Social Finance Foundation Loan Fund
The Social Finance Foundation which was setup by The Minister for Finance aims to provide low cost finance to projects by individuals and communities who may have difficulty in obtaining capital from lending institutions.
In July 2007 The LEDP was appointed as a Social Loan Organisation and is one of just five organisations nationally recognized by the SFF to provide the service and is currently the only SLO operating from a Munster base. The Social Finance Foundation aims to provide low interest loans to individuals and communities to setup projects or enterprises that have a social or community aspect. It is envisaged that this fund will encourage local development in areas where it may have been impossible previously.
Social Loan Fund Loan Approval Conditions
General
The objective of the LEDP Social Finance Loan is to provide start-up loan finance, by way of loan capital, to projects, which cannot access funding (or sufficient funding) from other sources including commercial lending agencies, State and Semi State Support Agencies, or own resources. The applicants must demonstrate the potential to be commercially viable or that the project is in the opinion of LEDP one which deserves special consideration on the basis of disadvantaged socio-economic factors.
Loans
LEDP provides loans from the Social Finance Foundation. In order to offset a portion of LEDP’s costs in the administration of this facility on your behalf, a fee of €25 is applicable in each case, and is payable at drawdown of the Loan. The Applicant must be able to demonstrate the ability and potential to repay the Loan.
Business Plans
When applying to LEDP for loan finance LEDP seek sight of a full business plan. If you have any problems constructing a business plan please do not hesitate to contact LEDP for some guidance.
References
LEDP will require personal, business and credit references as indicated to each project promoter. In making an application, the promoter is deemed to have authorised LEDP to take all reasonable steps to satisfy its Board in regard to these personal, business and credit references, from sources determined at LEDP discretion.
Loan Approval Conditions
In the event of the Board of LEDP approving a loan the following will apply:
- The Loan will contain conditions of repayment set out in the letter of approval.
- The maximum loan period will be 36 months.
- The maximum amount of the Loan will be €15000
- All loans will carry an interest rate of 5%
- No finance provided may be used to underwrite or finance existing debts.
- A moratorium of no more than 3 months on repayments of the Loan may be allowed at the sole discretion of the Directors of LEDP.
- LEDP reserve the right to appoint a Mentor of their choice to any project. Where such a Mentor is appointed, the applicant is deemed by virtue of their application for funds to have agreed to fully co-operate with any mentor appointed.
- The Directors reserve the right to apply such other conditions, as they may deem appropriate to any loan that may be advanced.
- All approved projects are deemed by virtue of their application to permit LEDP, to use their project for publicity and fund raising activities as determined by the Directors of LEDP, and each approved project will give due proportionate recognition to the assistance provided by LEDP.
- In the case of any breach of the above conditions or default on any repayment, the Directors of LEDP reserve the right to recall the entire loan and insist on immediate repayment.
Contact Details:
Karl Shanahan
LEDP
Limerick Enterprise Development Park
Roxboro
Limerick
Telephone: +353 (0) 61 316833/316083
Facsimile: +353 (0) 61 313786
