Cllr Roger Blaney

LeaderNewark & Sherwood District Council

Facts About our District

Newark & Sherwood:• Largest district in Nottinghamshire• Fastest growing population• Best communications:

- A1- East Coast Mainline

Recent Investment

Recent years : over £1billion investment

- £363m : A46 dualling- £680m : Staythorpe Power Station

Where we are now

Traditional industries declined- Coal mining- Engineering

Today : Tourism ‘string of pearls’Newark – Southwell – Sherwood Forest

- NSDC: National Civil War Centre- NCC: Sherwood Forest Visitor Centre

Our Key Strategic Priority

Prosperity:

• 2006: Government-designated Growth Point• 2011: Adopted local plan

- 14,800 new homes by 2026- Land south of Newark - 3,000+ homes

- £25m A1-A46 link

Our commitment

Growth Needs Investment:• £210m Infrastructure Delivery Plan• 2011 - First local authority to adopt CIL - £40m by 2026• Business support ie: Clipper Logistics grant aid

Biggest Challenge

Access to finance:• Bank lending• August 2012 ‘Funding for Lending’What can a local authority do to help?• Especially for SMEsNewark & Sherwood District Council:

Think BIG

Business Investment for Growth:• Identified a problem, came up with a solution• Pragmatic approach to risk and business loans• Clear processes; transparent governance

About Think BIG• £2m loan fund created by Newark & Sherwood District

Council

• Investment Fund - fills funding gaps, not to duplicate or compete

• To encourage business growth within the District & to create new jobs

• Part of the wider plan to stimulate economic growth in all business sectors

About Think BIG

• Not seed or early stage funding

• Aimed at existing businesses, with clear ambition and potential to grow, that the bank can’t help

• Support with investment readiness and signposting to other sources of funding

Think BIG Eligibility• Businesses located in Newark and Sherwood District

• Growth businesses with a turnover in excess of £250k and a minimum of 5 employees

• Sectors - prefer manufacturing, engineering, food processing, distribution ... some sectors will be excluded ie: retail

• Purpose: primarily for working capital

• Amount of loan: guideline range £25k - £150k

Think BIG Criteria

Requirements:• Two years most recent financials

- Balance sheet- Profit & loss accounts

• Up-to-date management accounts• Three year financial plan

- Cash flow forecast

• Business case for funding

Think BIG Criteria

Terms of loan:• Term: 6 months to 3 years; monthly repayments• Interest rate: circa 7% above bank base rate

- Depends on security/risk profile

• Security : business assets; possible personal guarantee

• Initial arrangement fee: 1%- Also monitoring fee & associated legal or other costs

Think BIG Criteria

Think BIG Process Map

Think BIG Progress to Date

Current status:• First loan taken up• Two further loans offered• Six prospects under consideration

Concept scaleable

Questions & Answers

Cllr Roger Blaney