What is the Cornwall & Isles of Scilly Investment Fund?
As a reminder for those who read our blogs:
- The £40 million Cornwall & Isles of Scilly Investment Fund (CIOSIF) provides commercial loan and equity finance between £25,000 and £2 million
- It is a collaboration between the Government-owned British Business Bank and the Cornwall & Isles of Scilly Local Enterprise Partnership (LEP)
- The aim of the British Business Bank is to make the finance markets work better for smaller businesses in the UK, and diversify what’s available
- Officially launched last summer, CIOSIF brings together funding from the European Regional Development Fund, the LEP and the UK Government and is aimed at small and medium sized businesses in Cornwall and the Isles of Scilly at all stages in their development
- CIOSIF’s funds can provide co-investment with other funders (including high street lenders) to make up an investment package, or can invest alone where no other funding is available
- CIOSIF has an appointed fund manager, The FSE Group, to evaluate applications and allocate funds. Enquiries and applications are made directly to them via the fund website at www.ciosif.co.uk
What funds are available?
Investments are commercially focused – they are not grants. Here’s what’s available:
Debt finance, from £25,000 to £1 million: this is designed for smaller businesses needing to borrow for a wide range of purposes including filling gaps in growth capital, funding expansion projects, employing new staff and investing in new machinery and equipment. It is particularly suited for fledgling businesses who may lack a proven trading record or not yet have any major assets.
Equity finance, from £50,000 to £2 million: In simple terms, equity financing is the raising of capital through the sale of shares in a business. An equity investment could be right if you have ambitious growth plans that need long term funding. Rather than requiring regular interest payments the fund will share in the success of your company. This can be particularly useful for companies with high growth potential or those innovating with new products or services.
Where can I find out more about the fund?
CIOSIF are presenting at Finance in Cornwall 2019.
In addition, if you would like to find out more about the fund, there is a free Meet the Fund Manager seminar running after Finance in Cornwall. The seminar takes place from 13.45 until 15.30 at the Lighthouse Cinema in Newquay. It will include representatives from FSE Group, the British Business Bank, a case study of a recent investee and a Q&A session. This event is ideal for SMEs looking at funding options and intermediaries advising their clients on business plans. You can book your place here.