Agenda item

To receive a report by the Cabinet Member for Community Services and Corporate Director for Growth, Environment and Transport that outlines the performance of the Fund.

1.            The Cabinet Member, Mr Hill, introduced an impact report on the Fund performance over the lifetime of the Fund, as requested by the Cabinet Committee and the annual report for the Kent Big Society Fund for information.  He advised that the final payment from KCC had been made to Kent Community Foundation and this completed KCC’s financial commitment to the Fund.  He stated that he was pleased with the work of the fund in helping to create a number of jobs and volunteering experiences.  He explained that the loan repayments were recycled directly into the Fund with interest and there had been minimal defaults. 

2.            The Programme Manager (KCC), Mrs Doherty, Mr Garrett, Fund Manager and Mrs Lynch, Chief Executive, from Kent Community Foundation explained the role of the Fund.  The Fund filled a nationally identified gap in the social finance market by offering loans at blow £150,000 and met a growing demand for affordable risk capital. Following on they responded to questions by Members as follows:

a)     Mr Garrett explained that the movement of Queensborough Harbour to a Trust meant sustainability and the ability to attract funds from funds like KBSF and that local council funds could be diverted to other appropriate services and opened up a far wider offer.  Mrs Lynch advised that this was repayable finance and came back into the fund with interest and was not a grant.

b)     The Kent Woodland Employment Services had worked with the Conservation Trusts and were the only recipients of RGF money direct to a company in the county of £1m.   They had been part of a stringent overview of the work that they had carried out.  Mrs Lynch advised that this was repayable finance with interest and not a grant and was recyclable.

c)      Mrs Doherty advised that when the Investment Panel, which included KCC Members and Trustees of the Community Foundation, made decisions on investment from the fund there was a rigorous process of checking that the investment was going to be used wisely.  It was key that we were not setting up small entrepreneurial businesses to fail by lending the funding to a business proposition that was not going to be sustainable.  This was carried out by ensuring that the visionary directors were budgeting to pay themselves something and the business plan and spreadsheets made good business sense.  Where there was specialist expertise required those checks were made.

d)     Mr Clark requested that future reports included all companies to be listed that receive funding including the default section.  Mr Garrett advised that there were two companies that had defaulted both by less than five percent of the funding loaned.

e)     Mr Garett advised that governance and sustainability were key questions asked of businesses being considered for KBSF.   

3.             Mr Hill explained that the loans were repayable and the money was recycled.  He hoped that others would be attracted to give funds.

4.            RESOLVED that:-

(a)  the responses to questions by Members be noted; and

(b)  the annual report and the three year impact report provided by Kent Community Foundation be endorsed.