MEIF MAVEN DEBT New funding opportunities for SMEs in the East and South East Midlands David Tindsley Investment Manager
MEIF MAVEN DEBT MEIF COVERAGE 50 million of funding available to SMEs in the West Midlands and 40m to SMEs in the East and South East Midlands Funding is for businesses operating primarily in the Midlands LEPs: Black Country Coventry & Warwickshire Greater Birmingham & Solihull The Marches Stoke & Staffordshire Worcestershire Leicester & Leicestershire South East Midlands Derby, Derbyshire, Nottingham & Nottinghamshire (D2N2) Greater Lincolnshire
MEIF MAVEN DEBT ABOUT MEIF MAVEN DEBT Loans are available of between 100,000 and 1.5 million to eligible SMEs. Targeting businesses which can contribute to regional economic development and job creation. MEIF Maven Debt Finance is available for established, profitable and cash-generative businesses with a material part of their operations or trading based in the Midlands. The Fund is intended to be supplemental to conventional SME funding plugging gaps where they may exist. The Fund is not targeting any specific sectors. However, there are certain restrictions which prohibit funding in sectors including pure real estate development activity, gambling related services & equipment and a variety of other specific exclusions - the Maven team can advise on these restrictions. Loans are repayable over a maximum of five years, minimum 12 months; a capital repayment holiday of up to 12 months is possible in appropriate cases. Security will be taken, subordinated to primary lenders. Interest rates will typically be 8-10% fixed; arrangement fee 1.5%; no early repayment costs.
Case Study 1 March 500,000 Deal completed March 2018 Principal shareholder based in Yorkshire was aware of NPIF so reacted quickly to MEIF debt fund being made available Established business with solid profitability; looking to expand overseas Growth funding subordinated to Lloyds (commercial mortgage) Close Brothers (CID) Mortgage debenture Funding will support creation of 20 jobs by the end of 2022 4
Case Study 2 Food manufacturer, supplying a range of quality retailers; 5m turnover 500,000 funding required for capex and product development to increase headcount by 10 initially Further equity funding has also been raised to support growth and strengthen the balance sheet CID/term debt provided by bank; MEIF funding subordinated to this Mortgage debenture security 5
Case Study 3 Telecoms service business; 5m turnover Looking to expand into neighbouring industrial units creating a further 10 administrative jobs and 30 engineer s jobs in the first 18 months after drawdown Use CID but relationship with bank not close 350,000 funding to be provided to buy and refurbish unit; business is paying a premium given the ideal location adjacent to existing operation Mortgage debenture; limited unsupported personal guarantees (reflecting premium being paid) Full priority for CID funder 6
MEIF MAVEN DEBT HOW TO ACCESS MEIF MAVEN DEBT Please note that in order to be considered by Maven for funding you will need to complete an initial application form online (accessed here: www.mavencp.com/meif) after which you will be contacted by the relevant Maven executive. For your funding application to be fully appraised, you will need to provide a detailed business plan covering the key points about your business and growth plans. Maven can guide you on this process. For more information visit: www.mavencp.com David Tindsley Investment Manager david.tindsley@mavencp.com Mobile:: 07505 460577 Jonathan Lowe Investment Director jonathan.lowe@mavencp.com Mobile:07527 315786 Richard Altoft Investment Director richard.altoft@mavencp.com Phone: 0115 935 2113 Graham Hall Investment Manager graham.hall@mavencp.com Mobile: 07889 780170