Invest in SBIC Incubators

SMALL BUSINESS INVESTMENT COMPANY LIMITED – INCUBATOR FUNDING

Small Business Investment Company (SBIC) specialize in helping small companies/the long term unemployed through its 10 web sites and a proposed training hot desk incubator centre. SBIC is looking for £_____ seed funding to help cover initial cash flow costs of setting up a new incubator pilot venue. This will be paid back within 3/6 months from Government funding.

The Government has recently announced the first of its Welfare to Work schemes. It offers the long term (6 months+) unemployed £2000 + a £1000 loan + mentoring to start up a new business. This includes graduates and the older unemployed.

We estimate SBIC will generate Government and charity backed prepaid funding of £900k for each 6 month incubator programme. We will also benefit from other Government backed Big Society schemes when they launched.

Landlords of large empty office/shop properties are now expected to pay full business rates. We will offer landlords to half this bill, for a short term lease. We will apply for the 20% local charity refund on rates. SBIC will not pay rates and have an estimated £50k income from landlords.

A telephone marketing social enterprise received a £292,500 Government employment grant for 45 people, as well as £500,000 and £350,000 from social funds. The management have invested £150,000 and still retained 51% of the company. In the current financial climate, it would be hard to find funding at this level for a start up.

As a social enterprise SBIC will be able to apply for extra social enterprise Grants, Local Government support and specialist bank funding which could total over £850,000.
We will use third parties, charities and volunteers like the Prince’s Trust to provide the training programme. Staff will also be expected to undertake work for third parties. Equipment and set up costs will be kept portable/to a minimum for the 6 month rolling programme.

SBIC is owned and run by Peter Bhanot: with help from David Bowman and specialist charity funding consultants.
SBIC has projected net Government funding and charity donations of £900k. Staffing set up and training costs are estimated as £400K leaving a net profit of £500k for each 6 month incubator project.

If the pilot project was extended another 6 months, other venues are set up or further social enterprise funding was acquired the projected profits would rise substantially.
If, after 6 months, the incubator project is completed a seed investor could;

1. treat the seed investment as a loan and have his investment returned plus __% interest or
2. have his seed investment returned and __% of the net profits or
3. convert the seed investment into shares in Small Business Investment Company Limited

Any seed investment would be quickly underwritten by Government fee income and provide the opportunity for a substantial return after 6 months.

Contact Peter Bhanot on 0780 370 7126 if you are interested in this great opportunity.