Funding Delivery Partner- Social Enterprises

Description

The Development Bank of Wales is seeking to appoint a Funding Delivery Partner to support delivery of funding to the social enterprise sector in Wales through funding available in the Wales Micro- Loan Fund, or future subsequent follow-on funding as agreed with Welsh Government.NOTE: The authority is using eTenderwales to carry out this procurement process. To obtain further information record your interest on Sell2Wales at https://www.sell2wales.gov.wales/search/search_switch.aspx?ID=147697 SERVICE REQUIREDThe Development Bank of Wales is seeking to appoint a Funding Delivery Partner (“Service Provider”) to support delivery of funding to the social enterprise sector in Wales through funding available in the Wales Micro- Loan Fund, or future subsequent follow-on funding as agreed with Welsh Government. The below sections detail the service requirements.Fund ObjectivesDelivery of the following key objectives:Ensuring pan-Wales access to finance for social enterprisesProviding patient capital for social enterprise businessesEncouraging start-up and growth of social enterprisesSupporting the wider third sector where viable repayable projects existService DeliveryOperational delivery in line with the following requirements:Holding Fund ManagementDBW Investments 10 Ltd will act as the Holding Fund with primary responsibility for fund governance and managing the performance of the service providers. Any fund management contract awarded will be entered into with this entity.MarketingDBW and the service providers will be jointly responsible for the marketing of the available funding.Investment ProcessStage 1- Service provider:Promotion of funding availability through dedicated marketing and events (including social media and websites)Processing enquiries and applications for fundingSanctioning of loans within own existing processes- including investment panel as appropriateSubmission of sanction paper to DBW along with approval documentationStage 2- DBWReview investment eligibility and check all documentation.Run suite of relevant searches including Equifax and Consumer reports.DBW originated the Auto ID&V to individuals and complete the Customer Due Diligence form.Set up social enterprise companies and individual contacts on CRMLegal team to create offer letter and all security documentationOffer letter / Security documentation is sent to the social enterprise via DocuSign bundle.Stage 3- Social EnterpriseCompletion of loan paperwork and complete the Auto ID&V processLoan Paperwork is returned to DBW via DocuSign once completed and signed by all parties.Stage 4- Service ProviderCompletion of drawdown request form, completion note, and Authorised Signatory sign off.Stage 5 – DBWDrawdown preparedFile checked by DBW Fund ManagerFinal Searches completedDrawdown sign offFinance to process transfer of funds to social enterprisePortfolio Management processService ProviderOngoing account managementCompletion of Impact of Investment form annually using data from each ‘live’ social enterprise company and forward to DBWGain and review any Conditions Subsequent documentation following initial loan drawdownUpdate DBW with payment strategy should there be any unpaid Direct DebitsLiaise with DBW if social enterprises require copy of loan statements or early redemption statementsLiaise with DBW should the social enterprise require any repayment holidays or early/full repayment of loanAdvise DBW if any risk issues identified within the social enterpriseDBWMonthly Direct Debit set up and initiate annual Impact of Investment form with Service Provider.Management by the internal Risk team of any investments where there is more than 2 months of arrears. The DBW Risk team will work in collaboration with the service provider to support the individual customer’s needs.Management of repayment of loan or part repayment of loan if instruction received from service provider or social enterpriseThe contract for services by the Service Provider will be awarded for an initial 1-year timeframe, with subsequent annual 1-year extensions following notice of commitment of budget for that year from Welsh Government. The 1-year contract extensions will continue for a period of 4 years, therefore providing for services for 5 years in total.(WA Ref:147697)