Q: Does the Budget (£150-200k) include the development and maintenance of the "Portal"?

A: Yes it does

Q: Can any of the costs of providing services above the minimum necessary to meet defined outputs be recovered from Programme participants?

A:  We are looking for each proposal to identify their own method, if you feel that this would be appropriate for your proposal then you may include it.  All services offered by the Croydon Enterprise programme are free to our businesses, however if you feel that there is a case for a chargeable service that is fine.

Q:  I noticed LEGI is procuring a programme of support to help businesses enhance their approach to e commerce. 
Croydon Business will be accountable for it. Are they able to be involved in tenders for the work?

A:  Croydon Business are not accountable for this project, they are one of our delivery partners under Theme 2 of our programme. Within their grant agreement they have a co-ordination role to work in partnership with the other delivery partners within Theme 2.
Croydon Council is the accountable body and Croydon Enterprise is the commissioning team responsible for all projects in the programme.

Q: From the Outputs (Page 8) it mentions 18WS and 150 BA.  Does this imply that 18 Workshops need to be delivered for 0809 and 150 Businesses Advised (1:1)

A: Yes, this is what we would like to achieve. However, the number of businesses advised is not restricted to one to one sessions there may also be other methods used to advise businesses.

Also, please note that the figures quoted in the specification are for guidance only, the output totals can vary and this should be reflected in the budget of each proposal.

Q: We are reviewing the e-Commerce specification with partner organisations with a view to submitting a proposal.

In the general specification it sets out that a spreadsheet should be submitted with the proposal identifying cashflows over the life of the project against a planned profile of outputs/outcomes.

On p8 of the project specification there is a spreadsheet setting out the number of outputs required in each period: July 2008 – March 2009 and April 2009-March 2010.
I would be grateful for your guidance on the following three questions relating to this spreadsheet.

· Some of the outputs have target numbers associated with them: turnover, growth, workshops and businesses advised. Are these minima that should be put into the spreadsheet but profiled by month over the life of the project?

A: The target numbers quoted in the specification are for guidance only and can vary to reflect your budget forecast. Projects are required to complete a monitor report on a quarterly basis, so there is flexibility as to whether you provide details on within your spreadsheet on a monthly or quarterly basis.  

Q: Other outputs have no associated target numbers: search engine rankings and the numbers of businesses which have sold online. Are there target numbers for these outputs or are potential providers required to submit proposals for outputs under these headings?

• The cashflow forecast will show planned expenditure designed to deliver the outputs over the life of the project. Will a payment profile be agreed with the successful provider based on
• an agreed cashflow forecast?
• delivery of outputs?
• some other mechanism?

A:Yes it will be based on the budget forecast and delivery of outputs and outcomes.

Q: The page on your web site says the closing date is the 11th June for E Commerce submissions but the invitation to tender letter on the same page says it's the 6th June

Which one is correct?

A: I have checked the invitation tender letter on our site and it has the 11 June on it. I am not sure why you downloaded a letter with the 6th, but the deadline date is 11th June.

Q: Please could you advise approximately how many small businesses/entrepreneurs registered through Croydon Enterprise are:
-currently interested in adapting e-commerce?
-forecasted to adapt e-commerce?

A: Unfortunately we do not have the data to provide this information. This could be an area of work that bidders may choose to include within their proposal to do some research around, the target information provided in the specification is for guidance only and may vary accordingly to reflect their budget costs.  

E-commerce opportunity:
e-commerce

Q: What is the minimum acceptable previous track record in this type of provision you require of an organisation submitting a proposal?
A: There is no minimum previous track record set. We are looking for an organisation that can demonstrate their ability to provide the support/services as stated within our specification.

Q: Can we submit electronically?
A: Yes you can, it must be received by the deadline.

Q: Daniel Dullaway
South Norwood

I have noticed on your website (under finance support) that you are funding 2 local credit unions (Croydon Caribbean and Croydon Savers) what exactly are the criteria in terms of appling for loans from these unions?

When will the facilities be in place for business development loans? business start up loans ? test trading grants?
I know the website states over the next few months but lets face it you have saying that for a year.

How much of the twenty something million you have been awarded so far will be allocated to the varied loan schemes you have ?

Why has it taken over a year to start to put things in place for business loans? I along side many eagerly awaiting candidates are keen to know.

A:

1: Business Development Loans Applications Criteria.

All information as pertains the operation of this loan fund including the lending criteria is posted on the web site; if you have any queries, it is advisable that you contact Croydon Savers Credit Union to get direct answers, their contact details are also posted on the website. Nevertheless I have copied these details to this mail for you.
Programme Partners:

Project Manager; Mr. Martin Groombridge
Croydon Savers Credit Union,
Taberner House,
Park Lane,
Croydon,
CRO 3JS

Tel: 0208 760 5711
Business Development Loans, advice to borrowers and application forms:

For further information about Business Development Loans, or any other general business support query please contact:-
The Croydon Enterprise Business Hotline on 0208 680 6161. 

Information URL = http://www.croydonenterprise.com/spec-financeladder.html

Please also see the foot of the above listed web page for printed information and application forms.

2: When will facilities be in place for Business Development Loans, Business Start         -Up Loans and Test Trading Grants?

CDFI Loan Fund ‘Finance for Enterprise’;
We a currently carrying out all the necessary preliminary work to launch the Main Loan Fund. Some facilities are in place and our delivery partners are currently engaged in pre-registration of businesses wanting to access business finance. Assuming you are a business seeking finance please feel free to contact;

Bob Warren; 02079401567 or bob.w@gle.co.uk

The main programme of loan application, support, assessment and award of a business loan will come on-line latter in the month.

Test Trading Grants;
There is no time schedule for the development of the Test Trading Grant scheme. As it is our desire to involve as many strategic partners as possible in the delivery of this project we hope to have a business grant scheme up and running at the most convenient and most practical time given the logistics involved.

3: I know the website states over the next few months but lets face it you have saying
that for a year.

The various enterprise finance (Schemes) projects have had on average 6 to 9 months development work carried out on them. With the involvement of different partners at all levels (strategic and professional) and quite a few procurement hurdles to overcome (Local, Regional and European), not to mention the formation from scratch of required support organization to deliver publicly funded business loans to eligible target groups. Added to this is the legal side of the delivery programme which takes quite some time to conclude.

Croydon Enterprises’ enterprise finance programme has been specified to deliver a locally based programme (where such provision did not exist previously), to capacity build existing local provision, which fell well short of the Pan-London standard, and to provide for a sustainable programme whose impact will offer Croydon a legacy of continue enterprise finance in the marginalised sector.

We hope all of the enterprise finance programmes will start delivery this month.

4: How much of the twenty something million you have been
awarded so far will be allocated to the varied loan schemes you have ?

Loan / Grant Funds Available;

Test Trading Grants = £30,000
Credit Union Enterprise Development and Capacity Building Loans = £100,000
Finance for Enterprise = £1000 000

5: Why has it taken over a year to start to put things in place for
business loans? I along side many eagerly awaiting candidates are keen
to know.

I believe you have received a response to this question from my colleague Chris.

Croydon Enterprise
It is a programme that’s creating opportunities for Croydon people with ideas and talent, so that they can start their own business, or become self-employed.

It is led and commissioned by Croydon Council, with key delivery partners from the business, public and voluntary sectors.
It is a Local Enterprise Growth Initiative (LEGI) programme from central government – providing Croydon with the investment and authority to support local plans for enterprise development.
It is a 10 year programme; funding of £20.3m has been confirmed for the first three years.

Croydon Enterprise is not just another grants programme – it is providing coordinated support to provide a range of support services to boost enterprise and entrepreneurship.
Organisations delivering the programme – delivery partners – are expected to work to a detailed delivery plan and there are tough performance targets.

The whole borough benefits
All areas of the borough will benefit from the programme; however the focus must be on areas with the highest levels of deprivation, where there are relatively low levels of enterprise activity.  These are in North West Croydon, Fieldway, New Addington, Shrublands and Monk’s Hill, and other pockets of deprivation. 

Targeting people
All programme initiatives are available to all residents; however the priority is people from those communities which have not engaged in enterprise opportunities.
Target groups are: young people, including those who are not at school, in employment or employment training; teenage parents; women; lone parents; people with disabilities; people from black, Asian and minority ethnic communities and people over 50 years old.

What is LEGI?
It is a new central government initiative which aims to increase the number of businesses and employment opportunities in the most deprived local areas through enterprise and investment.

How does it work?
LEGI provides Croydon with the investment and authority to support local plans for enterprise development. Agencies are expected to work in partnership with the private sector and the wider community.

Where will the money be invested?
It has to benefit North West Croydon and New Addington-Fieldway –Neighbourhood Renewal areasthat qualifyunder government ‘deprivation’ measures. But we will ensure that all parts of the borough benefit.

What’s it worth?
The first funding, £20.3m over three years, has been confirmed. We are expecting £77m over 10 years - the length of the programme. We expect to double this investment through support from our partners.

Isn’t LEGI just replacing other government funding schemes?
No - LEGI is new and separate funding.

How do we know money won’t be swallowed up in red tape?
We promise to keep admin down to the absolute minimum – this cash is an investment in Croydon enterprise … and that’s where it’s going. For example, our programme advisory groups are short-lived – they do their job and pack up. Our programme will also be independently audited.

Who is in charge?
The Croydon Strategic Partnership, which has executive board members from business, health and the public sector – including the council - has oversight of the programme.

Who does the monitoring?
Overall the Government Office for London will have to be kept up to speed with progress and the achievement of targets to ensure that the next slice of funding is paid.

How will you measure success?
We have a series of existing government targets.  Two are to reduce the small businesses failure rate … and boost employment in our target areas. But we will also set tough success targets with the help of local firms and Croydon Business Ltd.

Your original proposal claimed that you would be able to raise more than the £77m agreed. Where from?
We have major public and private sector partners we are negotiating with on investment, both cash and in kind.  Croydon also has a successful record on this kind of ‘levered’ investment.

What involvement do Croydon councillors have?
Councillors from both political parties backed the bid and the council itself has final, legal, responsibility for the programme. 

Why is it called Croydon Enterprise?
The programme links with opportunities created by the massive developments coming to central Croydon, as well as the boost to our economy expected by the building of the East London Line in 2010.  The proposals connect the target areas with opportunities to develop new small, and existing, businesses to grow.

What’s different about this programme?
Nothing quite like this has been done before – it is exclusively about boosting enterprise, entrepreneurship and opportunities. Earlier regeneration ideas – Single Regeneration Budget and Neighbourhood Renewal, for example, were mostly just about jobs. This programme is about a sustainable local economy – real jobs and real opportunities.

What does Croydon Council know about enterprise?
Unlike many types of council, we have excellent links with businesses and we are working with private sector partners to make this programme a success. We will also buy in expertise from the private sector, where we need it.

30 March 2007

(Answers in blue)
Please confirm whether it is still the intention to contract with a single organisation for the provision of both streams, whether you want/are willing to entertain bids for just one stream, or even are willing to entertain multiple contracts under the Finance Readiness stream? Clarity on this question is very important to determine how we will respond.

It is still the intention to contract a single delivery partner to deliver both streams.

Picking on some of the detail/numbers, I’m confused by the budget template and the revised outputs (answers in red):

• Pre Finance assistance is 150 and 200 on Outputs but only 75 and 94 on budget.
  Diagnostics are 100, 125 & 150 on output we have assumed a 75% conversion rate to Pre Finance Assistance i.e 75, 94 & 112

• Capital repayments are shown as £150,000 in year 1, but with only £250,000 loaned out over 3 to 5 years that is clearly impossible unless I’ve mis-understood the intention.
  Let us know what you feel is possible given the specified default rate of 15% and under

• No of businesses reporting growth – I assume this is a combination of those getting loans from the fund and those  just having finance readiness – if responsibility is split between the streams, can you split this output accordingly.
  It is not accurate to assume that responsibility is split between the streams.

• Overall costs in each year on your draft budget are significantly lower.  Is this intentional/indicative of what is available?
  It is intentionally indicative (based on our costings of the service). We welcome considerd targeted proposed costings

• Surprised how the performance fee has been calculated.  I would have expected this to be a percentage of the loans repaid, rather than the overall funding pot, otherwise how do you confirm the actual bad debt rate incurred (which is always back end loaded).
  Do mention this in your response to the Project Specifics; the panel will consider your reasoning.

• Average loan will be £5,000 based on capital and numbers, which seems rather low given smaller loans (under £2,000) will come from Credit Union.
  Please address this issue within your response to the the panel’s queries.

• It would appear that the requirement to build an Angel Network has been brought forward, with 10 now needed in year 1 – is this correct?  What is the thinking?
  Utilisation of existing resources is the thinking and desired will be more appropriate as opposed to needed.

• Could you explain the thinking behind the flat fee and the rate adopted?  I’d normally expect to be paid either a fee or on a cost recovery basis. Is it assumed that some of our costs cannot be recovered under the cost recovery element – if so which?
  It is not so assumed. The specified rate is assumed to be standard fee rate. Please detail your preferred payment method in the response.

• Who should be marketing the two elements, as I can’t see any allowance in the draft budget?
  The contracted delivery partner will hopefully market the programme.

Divine Ihekwoaba
Finance Project Manager
Tel: 020 8090 1686
divine.ihekwoaba@croydonenterprise.com

8 March, 2007

Finance for Enterprise
When submitting our Finance Ladder bid for Friday, can it be submitted by email or do you need a hard copy by the deadline?
An electronic submission i.e. (e-mailed Tender) is acceptable. We look forward to your submission.

1 March, 2007

(Answers in blue)
Dear Divine,

In preparing a bid for the Finance Ladder Loan management Contract, could I ask a few questions?

1.         What responsibility will the fund manager have for any bad debts?  My understanding is that he will be neither rewarded for a good performance nor penalised for a bad performance, nor will he be making lending decisions.  Therefore, will the costs of any recovery action be taken out of the management fee or elsewhere (e.g. from the capital).

The tender process invites delivery proposals from prospective candidates like yourselves, as such we hoped your bid would suggested a preferred method of operating that would cover all aspects of the programme including the relationship and responsibilities of Fund Managers and how you intend to cover the costs of all activities, which we believe should come from the Management Fee budget.

We would also expect annual targets to be agreed, linked to performance; both in level of lending and types of lending (i.e. to target groups and agreed levels of risk etc) and including debt recovery.  This would be agreed by the Finance Management Committee and Programme Manager and built into the overall contract with Annual review.

2.         What level of responsibility will the Fund manager have for cash management and reconciliation of the bank account for capital? We work on two different models with different funds, one where we instruct the cash holder to make drawings etc. and have no direct sight of bank account or reconciliations the other where we have total control of the bank account and capital and therefore responsible for keeping control of it – unfortunately, these two options have different costs attached to them.

Again we suggest that within your proposal, you recommend a preferred way of operating, in order to achieve our overall programme objectives, and of course all the necessary details including Level of Fund manager responsibility and associated costs of Cash Management and Reconciliation should be detailed. As we have offered a level of flexibility in approach within the proposal framework, if your proposal is found by the Evaluation Panel to be attractive further details will be subsequently negotiated and the agreed approach built into the contract

3.   Could you clarify that the intended outputs can be achieved through lending anywhere in Croydon and not purely for the NW Croydon and New Addington areas?

In Croydon, the LEGI initiative is targeted on North West Croydon and Fieldway and New Addington. These are the Neighbourhood Renewal areas in Croydon. Two outlying estates will also be included – Shrublands and Monk’s Hill.

North West Croydon includes the following wards: Norbury, Upper Norwood, Thornton Heath, South Norwood, Bensham Manor, West Thornton, Woodside, Broad Green, Selhurst, Waddon, Addiscombe and Ashburton. This can be either place of residence or business

Whilst LEGI delivery will be focused on the target areas, we recognise that access to finance is an important topic so people and businesses in all parts of Croydon will be eligible for assistance from LEGI.

4.   Some minor arithmetic errors appear on page 7 with the Total Outputs sometimes different from the sum of the years.  Could you clarify which is the required output?

Thanks for bringing this to our attention, corrections have been made and the spec updated.

5.   Where do I find the responses to other people’s questions? I’ve looked on the Croydon Enterprise site – should it appear in the Q&A section (surprised nothing recorded since October 06).

Yes the questions and their responses will appear on the Q&A section of the Croydon Enterprise web site additionally there is a Q&A section attached to the specification tender details which is updated as necessary.

Thanks. Hope these answers are helpful; nevertheless please feel free to contact me for further clarification, if required.

Divine Ihekwoaba
Finance Project Manager
Tel: 020 8090 1686
divine.ihekwoaba@croydonenterprise.com

28 February, 2007

Having reviewed the bid papers for the Finance Project I need to contact you regarding our eligibility, as we have only been going three years at the end of next month.   I need to know whether there is a way around this?

Thank you for taking the time to review our tender specification and for the interest you have shown in working with us. I understand your concerns with regards to our Tender Specification:-

Specification for Delivery Agency: 
Experience required:

• A minimum of 5 years experience in running a CDFI or Loan Fund of similar size (at least £1M)

However I wouldn’t say that you age excludes you from tendering a proposal, as I am sure you would agree there would be a lot more to consider whilst evaluating any proposal than simply the years of experience of the prospective company. For instance the level of loan funds managed in the past for example. Therefore Croydon Enterprise would look forward to receiving any proposal your company has to tender for this programme.

Divine Ihekwoaba
Finance Project Manager

Tel: 020 8090 1686
divine.ihekwoaba@croydonenterprise.com

25 October
Outreach and developing entrepreneurship among key target groups (DT1.2a)
How do you define “provide general information”?  Is this simply distribution of published material to the target areas?
It is up to the bidder to propose what general information, in what format and how, should be made available to the target groups.

Is there going to be any specific way in which the engagement events should measure attendance, bearing in mind that we have record 14,000 people?
The proposals should clarify how attendance will be captured in order to provide accurate monitoring data.

If we are only expected to directly interact with 450 members of the target group, how can we then refer 1,400 of them to other providers?
In most cases referrals are made without active interaction and continued support.  Therefore the numbers of expected referrals is greater.

How will the final outcome be demonstrated (“Work with the target groups to help them develop the necessary skills and personal qualities to engage in enterprise creation (not business start-up skills”)?
The proposals should demonstrate how qualitative outcomes and ‘distance traveled’ will be measured.

19 October
Access to enterprise information (DT1 2d)

We are not entirely clear who this project would be delivered to.  Is it for us to train the providers who then disseminate to their learners or would we be directly dealing with learners?

The project should deliver to learners ultimately but it is up to each organisation to propose how they will be delivering that.

The number of students to deal with seems huge, would this be directly or through dissemination?

This project should be directly delivered to students/trainees but apologies the numbers are wrong, ‘the number of students/trainees attended courses visited’ should read:

18 October
Two procurement contracts

Why were the two specifications not put together as one? There are two different elements; one is about e-enabling the business community so they can do business with the public sector, and the other is about educating the business community on how to win contracts. However, the same company can bid for both.  (See below for more information).

1) Supply Chain and Procurement – Centre of Excellence
Bringing alive the Business Friendly concordat
The primary role of this area is to work closely with the council and other public sector organisations in delivering a three pronged approach;

1. Working with all staff to bring together a joint departmental and innovative buying process.
2. Working with large contractors to bring about changes in their sub-contracting arrangements to benefit smaller businesses in the community by opening up their supply chains
3. Working with SME’s to up-skill so they can do business with the public and large private sector organisations, making SME’s more aware of how to win business through seminars / tool-kits / knowledge etc

2) ECommerce Support

1. E-enabling the business community so they don’t miss out on public sector contracts, reducing jobs at risk and business failure in the target areas.
2. Simplifying the tender process for contracts under 100k, initially with Croydon Council then to roll out with other public sectors and large private sector organisations.

13 October
Access to Enterprise Information in colleges and learning centres:
Can you confirm that the tender is an opportunity for all providers to bid into and that the focus and priority is an adult skills focus and the delivery is not just for 14-19 year olds?’
To avoid uncertainty this programme is predominately an adult skills focus for all providers to bid into but it needs to link up with 14-19 year olds vocational development.  At this stage we are asking prospective bidders to be aware that their proposal should be capable of developing a 14-19 year olds theme.