ES Fund TISE Loan Fund for Social Economy Micha RADZIWI Budapest, - PowerPoint PPT Presentation

ES Fund TISE Loan Fund for Social Economy Michał RADZIWIŁŁ Budapest, October 03 2014

About TISE SA Social and Economic Investment Company  Established in 1991 - 100% subsidiary company of the French bank Crédit Coopératif (leading institution in European social finance )  Until 2005, venture capital fund supporting the development of small entrepreneurship in Poland  Since 2002 – member of FEBEA (European Federation of Ethical and Alternative Banks)  Since 2008 - granting loans to social economy players as well as micro and SMEs  Since 2012 TISE operations have been also funded by Bank Gospodarstwa Krajowego [National Economy Bank], EUR 28m, currently 8 regional programs in 9 voivodships  Since 2013 TISE is also a partner of Bank Gospodarstwa Krajowego in the pilot project co- financed by the European Social Fund “Support to financial engineering for the development of social economy” , EUR 6m, currently around 150 loans granted

Social economy sector in Poland SE entities  non-governmental institutions (over 76,000 entities, including around 8,000 organizations having an economic activity)  social cooperatives (~1000)  cooperatives of the disabled and the blind (~ 300)  cooperatives of workers(~ 600 )  ZAZ (Vocational Training Center) WTZ Occupational Therapy Workshop ( 750)  other institutions such as: • associations of local governments, • ecclesiastical legal persons and organizational units running public benefit activity, • limited liability and joint stock companies which do not distribute profit to private shareholders • sport clubs operating as non-profit companies

The social economy in the ESF programme Human Capital 2007-2013 Central level / Integrated system for social economy support  Coordination system for support, education and monitoring of SE  Infrastructure for ES support- accreditation system for regional social economy support centres,  Central level / Social economy Working Group for Systemic Solutions (high level group appointed by the PM in 2008) working out: strategic, legal, educational, financial solutions  Loan Fund for social economy entities 4

ESF loan fund for social economy entities  It is a part of central support system for social economy  Aimed at providing access to capital indispensable for further development (after 12 months from starting business)  It is a pilot project testing the financial revolving instrument before scaling up in the new programme 2014-2020 (the policy tending to minimize grants and extend revolving financial instruments) 5

Pilot project - objectives  Granting at least 251 loans by 30/06/2015 for the maximum total amount of PLN 25 M; project deadline – December 2020;  Providing advisory services to at least 200 social economy entities by 30/09/2015; in total 4 000 hrs,  total value of the de minimis aid – EUR 100 K;  Creating minimum 50 jobs;  Assessing the financial situation of the social enterprises based on the group of financed and rejected clients;  Determining the financial needs of the social economy entities;  Checking in practice the risk assessment methodology designed for the sector proposed by BGK.

Pilot project – special features  Preferential conditions (interest rate 25% or 50% of the rediscount rate, no charges, no commision, no extra fees);  For social economy entities running business activity;  Free advisory services after loan granting.  Regional distribution (five macro-regions corresponding to the areas of operation of five Social Economy Centres);

Pilot project - regional distribution

Pilot project - fixed parameters Maximum amount: PLN 100,000 (EUR 25,000) Interest rate: 25% or 50% of rediscount rate (de minimis aid) Maturity : Up to 60 months Maximum grace period: Up to 6 months Maximum financing: Up to 100% of an investment Charges and fees: None Advisory services Free of charge (de minimis aid) Maximum number of hours 30 per Borrower

ESFund/TISE performance as of September 30 , 2014 From March 2013 till September 2014:  185 loans granted for a total amount of over EUR 4 M (60% of available funds);  150 business activity development have been implemented;  200 declared jobs to be created and sustained;  3500 hrs declared interest in advisory services;

Financing needs of the Polish social economy entities  Wider range of financial products:  Working capital and liquidity loans;  Investment and development financing;  Quasi capital – social VC, subordinate loans, mezzanine;  Bigger amounts  Funding specifically dedicated to start-ups

ES Fund borrowers - a few examples

ES Fund borrowers - a few examples Dominican Liturgical Centre Foundation - Publishing house in Krakow

ES Fund borrowers - a few examples Social Cooperative " Our House " - integration’s kindergarten and nursery in Warsaw

ES Fund borrowers - a few examples Chamomile Land Association- Rural Spa (Lublin region)

ES Fund borrowers - a few examples „ Scorpions ” – skins and furs social cooperative (Lodz region)

Thank you Michał RADZIWIŁŁ michal.radziwill@tise.pl, www.tise.pl