Call for Proposals VP 2013 017 En

8/13/2019 Call for Proposals VP 2013 017 En

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EUROPEAN COMMISSIONDG Employment, Social Affairs and Inclusion

Europe 2020: Employment PoliciesSectorial Employment Challenges, Youth Employment and Entrepreneurship

CALL FOR PROPOSALS - VP/2013/017

Supporting the demand and supply side of the market for social enterprise

finance

In view of the large number of enquiries, please do not telephone.

Questions should be sent by e-mail only to:[email protected] ensure a more rapid response it is helpful if applicants send their queries

in English, French or German.

The English version of the call is the original.

BUDGET HEADING 04 0418

Preparatory action

Social innovation driven by social business and young

entrepreneurship
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Table of Contents

1. INTRODUCTIONBACKGROUND ................................................... 32. OBJECTIVESTHEMEPRIORITIES............................................... 63. INDICATIVE TIMETABLE ................................................................. 104. BUDGET AVAILABLE ....................................................................... 105. ADMISSIBILITY REQUIREMENTS .................................................. 116. EXCLUSION CRITERIA ..................................................................... 11

6.1. Exclusion from participation ......................................................... 116.2. Exclusion from award.................................................................... 126.3. Supporting documents ................................................................... 12

7. ELIGIBILITY CRITERIA..................................................................... 127.1. Eligible applicants ......................................................................... 127.2. Eligible activities ........................................................................... 13

8. SELECTION CRITERIA ...................................................................... 148.1. Financial capacity .......................................................................... 148.2. Operational capacity ...................................................................... 15

9. AWARD CRITERIA ............................................................................. 1610. OTHER REQUIREMENTS .................................................................. 1711. DEFINITIONS ....................................................................................... 1712. LEGAL COMMITMENTS ................................................................... 1813. PROCEDURE FOR THE SUBMISSION OF PROPOSALS ............... 18

13.1.Electronic submission .................................................................... 1813.2.Submission on paper ..................................................................... 1813.3.Presentation of applications ........................................................... 1913.4.Contacts ......................................................................................... 20

ANNEX ......................................................................................................... 21


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1. INTRODUCTIONBACKGROUND

Social enterprises as drivers of social innovation

An important pillar of the European Unions ambitious socio-economic strategy for the

next decade Europe 2020 is social innovation, which in essence is the process of

developing new approaches or practices for resolving societal challenges through

mobilising civil society actors to further inclusive, socially fairer and environmentally

sustainable economic development and social change. This includes re-designing and re-

engineering business models and value chains, new relationships or collaborations

between public, private and third sector organisations, and delivery mechanisms for

public policies.

In this context, social entrepreneurs and social enterprises1 are drivers of change that

operate on the basis of viable business models. They also generate jobs through activities

that meet social needs in the context of sustainable and inclusive development.

The financial, economic and fiscal crisis has drastic social consequences on Europes

young generation, which not only has been deprived of employment opportunities and

lacks social security, but also is experiencing a crisis of values and a lack of confidence

in the capacity of established institutions to tackle pressing social and environmental

issues. Therefore, young people are particularly interested in engaging in civil society

initiatives and in alternative business models such as social enterprises, which aim at

generating social impact and social value.

A specific barrier to developing and implementing social innovation initiatives is access

to finance that suits the specific needs of social entrepreneurs and social enterprises as

their driving forces. This is in particular relevant for organisations created or managed by

young or early stage social entrepreneurs,

Social entrepreneur ship support under the EaSI programme

On 6 October 2011, the Commission proposed a Programme for Social Change and

Innovation2, now named Programme for Employment and Social Innovation (EaSI),

which will among other things provide support for social enterprises in the programming

period 2014-2020.

One of the objectives of the EaSI proposal is "to promote employment and social

inclusion by increasing the availability and accessibility of microfinance for vulnerable

groups and micro-enterprises, and by increasing access to finance for social enterprises."

In introducing a specific financial instrument for social enterprises, the EaSI proposal

translates into practice the action of the 90m euro European financial instrument

announced under the Social Business Initiative: in the Commission proposal, within the

Microfinance and social entrepreneurship axis, EUR 92.28 million were earmarked for

social enterprise support for start-up and existing social enterprises. The final figure

depends on the outcome of the negotiations on the Multiannual Financial Framework

2014-2020.

Under the EaSI, the Commission aims at supporting the development of the impact

investment market and facilitating access to finance for social enterprises by making

1For the purpose of this Preparatory Action, the following terms are used synonymously:

social business, social enterprise and social venture;

social finance and impact investment

Structural Funds and European Structural and Investment Funds2COM(2011)609 final


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available hybrid financing for social enterprises which could take the form of a

combination of equity, quasi-equity, loan instruments and grants. The total amount that a

social enterprise can receive is EUR 500 000 (state aid rules to be respected). Support

under the programme will be limited to enterprises, not listed on the stock market, with a

maximum of EUR 30m turnover (most social enterprises are smaller).

For the implementation of the financial instrument, the Commission will cooperate with

a financial institution. The selected organisation could provide funding to socialenterprises directly or indirectly through intermediaries such as impact investment funds.

Social entrepreneur ship under the European Social F und (ESF)

The European Social Fund (ESF)3 was established by the Treaty of Rome and is the

longest existing Structural Fund. It is the main financial instrument through which the

EU translates its strategic labour market, human resources development and social

inclusion policy aims into action.

The implementation takes the form of Operational Programmes (OPs) defined in

coherence with national strategic reference frameworks. The OPs are drawn up by theMember State or any authority designated by the Member State. They include

information on the priority axes and their specific targets (Article 37 of Regulation

1083/2006). For each OP, the Member State designates a number of authorities,

including a Managing Authority. The responsibilities of the Managing Authority

include ensuring that operations are selected for funding in accordance with the criteria

applicable to the operational programme (Article 60 of Regulation 1083/2006).

On 6 October 2011, the Commission proposed the new Regulations that will govern the

European Social Fund in the period 2014-20204. One of the foreseen investment

priorities reads "Promoting the social economy and social enterprises" (Article 3)5. Title

IV of the proposed general regulation6

widens the scope for the use of financialengineering instruments under the structural funds. Thus the new ESF can be expected to

provide possibilities for the promotion of social entrepreneurship through financial

instruments.

Barr iers in the social f inance market

Barriers to develop and strengthen the market for social finance have a different weight

across Europe, the most relevant being:

On the supply side: lack of suitable financial instrument in place; few investorsprepared to invest; scarcity of significant public sector initiative; little experience in

specifying a sustainable investment strategy and risk/return profile of a socialfinance fund;lack of capacities and tools to assess the viability of business plans andsocial impact, insufficient quality of investment propositions, absence of market

facilitators (such as qualified intermediaries and market places) or business angels

etc.

3 In the programming period 2007-2013 the ESF is governed by the following Regulations: Council

Regulation (EC) No 1083/2006, Regulation (EC) No 1081/2006, Commission Regulation (EC) No1828/2006, available at:http://ec.europa.eu/esf/main.jsp?catId=33&langId=en4COM(2011) 607 final /2,

5Ibid.

6COM(2011) 615 final/2
http://ec.europa.eu/esf/main.jsp?catId=33&langId=enhttp://ec.europa.eu/esf/main.jsp?catId=33&langId=enhttp://ec.europa.eu/esf/main.jsp?catId=33&langId=enhttp://ec.europa.eu/esf/main.jsp?catId=33&langId=en


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On the demand side: insufficient orientation on capital markets, but on the granteconomy; legal structures which discourage the attraction of (quasi-) equity; lack of

transparency of the market for social finance; insufficient experience in making

proposals for external financing, or for combining different sources and types of

finance (e.g. grants/loans); costs of getting investment ready; insufficient

infrastructures /business development services/ incubators, etc.

European Parli ament Preparatory Action

The European Parliament recognised the need to overcome these barriers through smart

action and asked the Commission to implement this preparatory action, working with

potential finance providers (in particular managing authorities for structural fund

programmes, notably those financed by the ESF) and financial intermediaries in a limited

number of pilot regions. The preparatory action is aimed at helping develop and

establish feasible, suitable and reliable schemes or funds providing equity or mezzanine

funding (including venture philanthropy). The European Parliament expected the results

of these learning pilots to be beneficial for the implementation of the relevant Europe

2020 flagship initiatives, notably Youth on the Move, An agenda for New Skills and

Jobs, Innovation Union and the European Platform against Poverty and Social

Exclusion, and for preparing the ground for an effective use of the ESF and other funds

after 2014.

The preparatory action will be implemented within the meaning of Article 54(2) of

Regulation (EU, Euratom) No. 966/2012 of the European Parliament and of the Council

of 25 October 2012. A total budget of EUR 1 million has been earmarked for this

purpose.


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2. OBJECTIVESTHEMEPRIORITIES

General objectives

The objective of the preparatory action is to identify, develop, promote and disseminate

the good practice of national, regional or local governments and of financial

intermediaries in assisting young social entrepreneurs at times of high youthunemployment. As such, the preparatory action will contribute to realising the potential

of young and social entrepreneurship, emphasised also in the Commissions Social

Business Initiative 2011, Annual Growth Survey 2011, as well as in the Communications

Towards a job-rich recovery 2012 and Social Investment for Growth and Cohesion

2013.

More precisely, this preparatory action aims to support the development of an impact

investment market that would enable more social enterprises to take on repayable finance

for developing and scaling their innovative business model:

Through institution and capacity building with committed actors to boost the

supply of social finance, and

By facilitating and preparing access to finance for social enterprises throughcapacity building that generates effective demand for social finance by

developing their investment readiness.

The main task will be to develop and establish feasible, suitable and reliable financial

instruments (schemes or funds providing equity or mezzanine funding, including venture

philanthropy). In doing so, the beneficiary will explore and test effective ways of

establishing, consolidating, sustaining and linking social finance schemes and

instruments, organize learning on what works and how, as well as what does not work,

and why.

The Preparatory Action is addressed to social enterprises in their early stages, and to

social enterprises started or developed by young peoplethat have the potential for

realising innovative solutions with a clear social and environmental impact,

scaling their innovative approach, or for

transferring their approach for replication in particular to young entrepreneurs .

Thus, the preparatory action will pave the way for

a swift uptake of EU social finance instruments after 2014 (notably the EaSIinstrument and financial instruments under the European Structural and

Investment Funds) by the creation of a pipeline of demand of impact investmentactors for partnerships with the EaSI instrument to share risk, improve

capitalization, and build capacity, in particular from Member States with less

developed impact investment markets;

experimenting with different models to develop the supply and demand side ofthe social finance market, which will provide a sound basis for fine-tuning the

capacity building component of the EaSI instrument to promote social

entrepreneurship;

learning from good practice in developing and enhancing social finance across theUnion, through organized sharing and disseminating of expertise and experience,

and through presenting practical examples that demonstrate how (public-private)

partnerships can effectively boost the supply of social finance through investing


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in or complementing suitable financial products, as well as the demand through

assisting social enterprises in getting investment ready.

In order to achieve these objectives, the Commission will have to work together with

potential finance providers and financial intermediaries in a limited number of pilot

regions. The preparatory action will show ways in which support for young and social

entrepreneurship can be most effectively incorporated into regional, urban or local

development strategies. Special focus will be on the use that could be made, in the 2014-2020 period, of EU financial instruments, in particular the Structural Funds.

Specif ic objectives

In order to take into account the variety of market situations in different Member States,

the call offers several strands. Each of them addresses a specific configuration of barriers.

Strands A, B and C act on the supply side of social finance, strand D on the demand side.

For all strands, the focus should be on social ventures that aim at social impact, are

financially sustainable, want to scale up (including through franchise) and, for that

purpose, want to raise between EUR 100 000 and EUR 500 000.

Strand A: Establishment of social finance partnerships

This strand is particularly relevant for actions in countries in which the social finance

market is not developed yet. It aims at addressing situations in which no suitable social

finance instrument is in place, with a lack of investors prepared to launch or participate in

a financial instrument. Although there is little experience in specifying a sustainable

investment strategy and risk/return profile of a social finance instrument, there is some

openness amongst potential investors and/or public bodies to contribute to establishing asuitable finance instrument.

In order to explore options to close the gap in supply of social finance for innovative

social enterprises and to mobilise and commit potential investors and stakeholders to

cooperate, the grant aims at reducing the risk of engaging in the first steps towards a

social finance instrument by facilitating the development of a consortium and

commitment to act. It is also meant to encourage learning from good practice examples

and expertise that can guide the formation of this partnership.

Strand B: Establishment of social finance instruments and mechanisms

This strand is particularly relevant for actions in countries with a relatively low level of

development of the social finance market. It aims at addressing situations in which there

is no suitable social finance instrument in place and potential investors and

intermediaries lack expertise that can guide the drafting of contractual agreements needed

for setting up a financial instrument.

In order to mobilise and commit potential investors and stakeholders to act and to

cooperate with a view to setting up a financial instrument, the grant is meant to reduce

the risk of innovation in the social finance market by facilitating the acquisition of

specific expertise in this field.

Strand C: Establishment of collaborative funding models for social enterprises


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This strand is particularly relevant for actions in countries in which different types of

actors are already operating in the social finance market, but in isolation. As a result,

these different types of social finance providers (foundations, social investors, public

authorities, notably ESF managing authorities) apply a broad range of incoherent and

unrelated eligibility criteria return expectations, conditions for repayment, requirements

for accounting and reporting etc. In addition, there is a lack of transparency which makes

it difficult for social entrepreneurs to develop an efficient mix of funding sources. The

absence of suitable platforms, market facilitators (such as qualified intermediaries and

market places) or business angels has prevented cooperation between investors, donors

and public authorities.

In order to improve the availability and effectiveness of suitable and needs-oriented

financial instruments for social enterprises, this strand aims at mobilising and committing

potential investors, donors and providers of business development services to co-operate

with a view to finding innovative approaches to providing finance to social enterprises.

Strand D: Development of investment readiness support for social enterprises

This strand addresses the insufficient investment-readiness of social enterprises. Even in

countries where there is a large pool of capital willing to invest in social enterprises,investments often remain complicated as social enterprises are not "investment ready".

This can be explained sometimes by their low interest in repayable financial instruments

due to an orientation towards the so-called grant economy, but also by a lack of

necessary documents such as impact reports or business plans and insufficient experience

in making proposals for external financing, or for combining different sources and types

of finance (e.g. grants/loans). In many countries, the quality and quantity of start-up and

business development services for social enterprises (incubators etc.) is unsatisfactory.

In order to generate a pipeline of social enterprises prepared to access social finance,including under the EaSI programme and the future structural funds, this strand aims at

improving the offer of specialised, experienced quality assistance and advice that help

address social enterprises' weak capacity in acquiring external financing or for combining

different types of finance.


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Expected results


A mobilisation of potential investors and intermediaries that would sign a Memorandum

of Understanding between private, public and not-for profit-partners documenting

- the commitment of the partners (including their roles and contributions) to contribute

to, and to collaborate in, establishing a financial product providing access to financefor social enterprises,

- the outline of an investment strategy for this financial product (objectives, actionplan, resources, risks/return profile etc.); and

- a description of the strategy and actions planned for achieving this as well as the linksand synergies with start-up and business development services for social enterprises.


An activation and commitment of investors and intermediaries that would sign a set of

legal documents required by EU and national rules to establish a financial instrument,

and necessary agreements between private, public and not-for-profit-partners,

documenting:

- the legal agreement of the partners (specifying their roles and contributions) tofinance, set up and manage a financial tool providing access to finance for social

enterprises

- the detailed investment strategy, governance structures, obligations and benefits ofinvestors, management rules and procedures as well as monitoring and evaluation

arrangements

- all contractual arrangements needed for the registration of the financial instrument,for fundraising, for investments, lending or underwriting and for the conduct of

management.


An innovative model of cooperation between investors and intermediaries that would

sign a Memorandum of Understanding between private, public and not-for-profit partners

(notably strategic philanthropic investors) documenting

- the agreement of the partners (including theirs roles and contributions) to collaboratein financing social enterprises

- the detailed cooperation agreements for implementing the joint strategy, and forensuring synergies and added value; and

- describing the actions planned to test (for a defined period up to 9 months) a fine-tuned mix of financial products that facilitates investments in social enterprises.


An improved (in particular in terms of the quality, quantity or geographical outreach)

provision of:

- integrated assistance to social enterprises in delivering a realistic, but effectiveinvestment readiness plan.

- assistance in the contacts and negotiations with potential investors.


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3. INDICATIVE TIMETABLE

Stages Date and time or

indicative period

a) Publication of the call October 2013

b) Deadline for submitting applications 15 November 2013

c) Evaluation period NovemberDecember

2013

d) Information to successful applicants January 2014

e) Signature of grant agreement January 2014

f) Starting date of the action/ work programme Between December 2013

and March 2014

g) Information to unsuccessful applicants January 2014

4. BUDGET AVAILABLE

The total budget earmarked for the co-financing of actions is estimated at EUR 1 million.

The maximum grant will be

- for strand A: EUR 75 000

- for strand B: EUR 125 000

- for strand C: EUR 125 000

- for strand D: EUR 100 000

The EU grant is limited to a maximum co-funding rate of 80% of the total eligible costs

taking into account the maximum grant amounts above.

The Commission reserves the right not to distribute all the funds available.


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5. ADMISSIBILITY REQUIREMENTS

To be eligible, applications must:

Be sent no later than the deadline for submitting applications referred to in section 3.

Be complete and include all the documents indicated in the checklist and the text ofthe call.

Respect the EC co-financing percentage as stipulated in chapter 4 (budget available).

Applications must be submitted in writing (see section 13), using the application form

and electronic submission system available at

https://webgate.ec.europa.eu/swim/external/displayWelcome.do and be sent in two

copies as a paper application.

Applicants are invited to submit their project proposal preferably in English, French or

German, in order to facilitate the treatment of the proposals and carry the evaluation

through as quickly as possible.

Failure to comply with those requirements will lead to the rejection of the application.

6. EXCLUSION CRITERIA

6.1. Exclusion from participation

Applicants and co-applicants must be in conformity with Articles 93(1), 94 and 96(2)(a)

of the Financial Regulation, Applicants will be excluded from participating in the call for

proposals procedure if they are in any of the following situations:

(a) they are bankrupt or being wound up, are having their affairs administered by the

courts, have entered into an arrangement with creditors, have suspended businessactivities, are the subject of proceedings concerning those matters, or are in any

analogous situation arising from a similar procedure provided for in national

legislation or regulations;

(b) they or persons having powers of representation, decision making or control overthem have been convicted of an offence concerning their professional conduct by a

judgment of a competent authority of a Member State which has the force of res

judicata;

(c) they have been guilty of grave professional misconduct proven by any meanswhich the contracting authority can justify including by decisions of the EIB and

international organisations;

(d) they are not in compliance with their obligations relating to the payment of socialsecurity contributions or the payment of taxes in accordance with the legal

provisions of the country in which they are established or with those of the country

of the RAO or those of the country where the grant agreement is to be performed;

(e) they or persons having powers of representation, decision making or control overthem have been the subject of a judgment which has the force of res judicata for

fraud, corruption, involvement in a criminal organisation, money laundering or any

other illegal activity, where such an illegal activity is detrimental to the Union's

financial interests;

(f) they are currently subject to an administrative penalty referred to in Article 109(1).
https://webgate.ec.europa.eu/swim/external/displayWelcome.dohttps://webgate.ec.europa.eu/swim/external/displayWelcome.do


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6.2. Exclusion from award

Applicants will not be granted financial assistance if, in the course of the grant award

procedure, they:

(a) are subject to a conflict of interest;

(b) are guilty of misrepresentation in supplying the information required by the

Commission as a condition of participation in the grant award procedure or fail tosupply this information;

(c) find themselves in one of the situations of exclusion, referred to in section 7.1.

Administrative and financial penalties may be imposed on applicants or co-applicants

who are guilty of misrepresentation.

6.3. Supporting documents

Applicants and co-applicants must sign a declaration on their honour certifying that they

are not in one of the situations referred to in articles 106(1) and 107 to 109, filling in therelevant form attached to the application form accompanying the call for proposals (cf.

no. 3 of check list in annex).

7. ELIGIBILITY CRITERIA

7.1. Eligible applicants

To be eligible,

- Applicants and co-applicants must be legally established in one of the Member States

of the EU- Applicants and co-applicants must be public, private or not-for-profit entities.

- For actions dealing with the supply side of social finance (strands A, B and C),applicants must implement the action in cooperation with at least two co-applicants

with a view to working towards the access of finance for social enterprises and in

particular young entrepreneurs7. For strand B, the applicant or one of the co-

applicants must be an investor committed to invest/co-invest in the financial

instrument to be established. Both applications under strands A and C are encouraged

to involve investors in the consortium (as applicant, co-applicant, associate or

affiliated organizations).

In order to assess the applicants and co-applicants' eligibility, the following supporting

documents are requested:

- Legal entity formaccompanied by the relevant supporting documents (see no. 6 ofcheck list in annex)

- A letter of mandatefrom each co-applicant (cf. no. 4 of check list in annex)

- A signed letter of commitment (in English, French or German) from each co-applicant explaining the nature of the co-applicant's involvement (technical and

financial) in the activities described in the work plan with the aim to achieve the

required results (cf. no. 7 of check list in annex).

7The term "young" refers to both the age and/or the early-stage experience as entrepreneur.


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- In addition, applications under strand B should include a signed letter ofcommitment from a private and/or public investor(applicant or co-applicant) that

has committed itself to invest in / co-invest with the financial instrument to be

established (cf. no. 7 of check list in annex).

- Applications under strand C should provide a letter of intention from a potentialinvestor willing to invest or co-invest in the financial products (cf. no. 7 of check list

in annex).

7.2. Eligible activities

To be eligible, actions must be fully carried out in the EU Member States (one or

several).


Under this strand the following types of activities are eligible:

- Assessment of the potential demand (e.g. through a workshop with stakeholders andsocial enterprises)

- Identification and building commitment of potential investors and financialintermediaries

- Identification of suitable managers for the financial product envisaged

- Knowledge and know-how transfer from other Member States (e.g. study visit, expertworkshop)

- Assessment of the suitability and feasibility of setting up a sustainable social financemechanism;


Under this stand, the following types of activities are eligible:

- Work of financial experts, lawyers etc. to draft the legal documents for setting up thesocial finance instrument or mechanism required by EU or national legislation

- Professional work to draft the strategy for the operations of the financial instrument(including fund raising and developing capacities for managing investments)

- Translations of legal documents in case proven models can be replicated or adapted

- IT services in case the financial instrument uses web-tools or is based on a webplatform


Under this strand, the following types of activities are eligible:

- Design, assessment of the feasibility and test (for a period of up to 9 months) ofinnovative models of cooperation between investors, donors and public authorities in

fields such as syndicate investments, revenue share agreements between social

enterprises and investors, pooling of donations of foundations to provide new

instruments such as guarantees or repayable grants, crowd funding, social impact

bonds, joint procedures and resources for due diligence procedures, etc.


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Under this strand, the following types of activities are eligible:

- Investment readiness services (to individual social enterprises or groups of socialenterprises) that aim at assisting, developing, strengthening and articulating an

investment case to typically raise between EUR 100 000 and EUR 500 000 of capital.

These services include advice and consultancy, mentoring and coaching, dedicatedcapacity building, training and peer learning to social enterprises from across

different industries and defined geographical locations.

Key service areas in support of investment readiness include, but are not limited to

the following:

o Strategy (strategic objectives, strategy review and development of sustainablebusiness models for social enterprises, values, model of change and commitment

to change, stakeholder involvement)

o Business planning (business model assessment, business plan review and refining,market analysis, options analysis, implementation of the plan, measuring

progress, evaluation and improvement)

o Social impact (social value and impact measurement, methods and capabilitydevelopment to articulate, measure, assure and report on social impact)

o Finance (Financial modelling, cash flow and financial forecasts, accountancy,finances, tax planning)

o Sales & contracting (marketing strategy and customer base development, uniqueselling point, branding, public sector procurement processes, payment by results)

o Governance & performance (legal structures, governance models, riskassessment, quality management, social franchising)

o Investment (capital structure, fundraising strategies and practices, identifying andengaging with potential investors, investor panels and showcasing events)

Implementation period

Projects should start between the 2nd of December 2013 and the 3rd of March 2014.

Expenditure incurred before the signature of the grant agreement is at the applicant's risk.

Therefore, applicants should note that if their project is approved they will not

necessarily receive the grant agreement prior to the start date of the action and should

take this into account in programming the timing of their project.

The maximum duration of projects is 12 months. Applications for projects scheduled torun for a longer period than that specified in this call for proposalswill not be accepted.

8. SELECTION CRITERIA

8.1. Financial capacity

Only organisations with the necessary financial and operational capacity may be

considered for award.

Applicants and co-applicants must have stable and sufficient sources of funding tomaintain their activity throughout the period during which the action is being carried out

or the year for which the grant is awarded and to participate in its funding. The


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applicants' financial capacity will be assessed on the basis of the following supporting

documents to be submitted with the application.

All applicants and co-applicants have to submit the declaration on their honour, as well

as the profit and loss account and the balance sheet for the last financial year for which

the accounts were closed (cf. no. 10 of check list in annex). For newly created entities,

the business plan might replace the above documents.

The verification of financial capacity does not apply to public bodies.

8.2. Operational capacity

Applicants and co-applicants must have the professional competencies as well as

appropriate qualifications (relevant experience and expertise) necessary to complete the

proposed work programme. In this respect, applicants have to submit:

A written declaration attesting professional competencies and appropriatequalification of the team carrying out the activity proposed (cf. no 13 of check list

in annex),

Curriculum vitae of the project manager indicating clearly the current employerwith whom there exists either a permanent or temporary contract of employment

as well as the curriculum vitae or description of the profile of the people primarily

responsible for managing and implementing the operation (cf. no 14 of check list

in annex).

References to related work or similar work undertaken over the past three yearsby the applicants, co-applicants, affiliated organisations or by experts that will be

in charge of the action. Please identify for each project the objectives, location,

results, organisation's role and degree of involvement, cost etc. (cf. no 15 of check

list in annex).

In addition, applicants have to submit the following documents in the annex of the online

application and by post (cf. no 16 of check list in annex), depending on the strand they

are applying for:


- No additional documents required


- An investment strategy (specifying objectives, action plan, resources, risks/returnprofile etc. for the financial instrument to be established) agreed between the

partners,

- A sound (internal or external) feasibility assessment of the investment strategy,

- An identification of an organisation that could potentially manage the financialinstrument.

These documents should not exceed 45 000 characters in total.

Strand C:Establishment of collaborative funding models for social enterprises


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- A joint strategy (specifying objectives, action plan, collaboration fields andmechanisms etc.) for aligning resources and investments agreed between the partners,

and its advantages over current approaches and practices.

This document should not exceed 30 000 characters in total.

Strand D:Development of investment readiness support for social enterprises- A description of skills, experience and track record in investment readiness support of

the applicants (and co-applicants, if applicable),

- A description of the organisations (co-applicants, if applicable) providing access tocapital (such as impact investment funds, angel investors or fund managers) the

applicant intends to cooperate with,

- Three references from social enterprises and at least one reference from a funder orinvestor which the applicant or the co-applicant has worked with on investment

readiness within the last two years including details of the services provided, the

investment targets and achievements.

These documents should not exceed 40 000 characters in total.

9. AWARD CRITERIA

Eligible applications/projects will be assessed on the basis of the following criteria:

- Relevance of the proposal to the call (25%).

In this respect, the application should present how the proposed activities of the

applicant organisation and/or co-applicants enlarge the size, extend the scope (bycovering other Member States or regions) or complement the type of established

services beyond the operations in the last years.

- Quality of the proposal, including in terms of potential sustainability (30%)

In this respect, proposals should include a description of the geographical coverage

and the type of social enterprises targeted, activities, deliverables, milestones,

assumptions, risks and how these will be managed, as well as an outline of alternative

plans.

o For the supply side (strands A, B, C) proposals should also include a descriptionof the state of play regarding social finance supply (including stakeholder and

problem analysis), potential demand (including assessment of potential demandand barriers to consolidate and scale).

o For the demand side (strand D), proposals should include an assessment ofbarriers to securing impact investment, potential of social enterprises to innovate

and grow, and of their investment needs, and description of the content of the

proposed investment readiness programme for social enterprises, including the

key services to be provided (as outlined in section 6.2 D above) and the

methodology for their delivery.

- Impact of the proposal (25%)

In this respect, proposals should include a brief description of the envisaged results.

- The cost / efficiency of the operation (20%).


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With consideration of the budget available for this call for proposals, the proposals with

the highest evaluation scores will be selected for award. Proposals with a total score of

less than 65% of the maximum score will not be considered for award.

10. OTHER REQUIREMENTS

- Participation in a platform for exchange of experience: the selected organisationshave to participate in a platform for the exchange of experience. This will involve

participation in four workshops as well as contributions to the common web-based

learning platform to share the experience gained under this call. The costs of the

participation of at least one participant for each organisation to the workshops should

be included in the budget of the proposal (one night/workshop). The participants will

be organisations supported under this call and other competent organisations.

- Reporting: The selected organisations have to submit quarterly reports (in English)describing the activities undertaken, problems faced and how these were overcome,

tools used, results achieved, learning needs, plans for the next steps.

11. DEFINITIONS

Financial

instrument

Financial product that may take the form of equity or quasi-equity

investments, secured or unsecured loans, guarantees, or other risk-sharing

instruments, grants and other type of participation in an enterprise

A financial instrument of the European Union seeks to address specific

policy objectives of the Union.

Financial

intermediary

A financial institution or contractual arrangement that facilitates the

channelling offundsbetween savers/investors/lenders/donors to social

enterprises in the form of financial instruments

Investment

readiness

The capacity and capability of a social enterprise to seek and utilise

investment. Key elements that help to make a social enterprise investment

ready include effective leadership, business planning and strategy,

methods and capability to articulate, measure, assure and report on social

and environmental impact, risk assessment, quality management

Social

enterprise

An undertaking, regardless of its legal form, which:

has as its primary objective the achievement of measurable, positivesocial impacts rather than generating profit for its owners, members

and shareholders

uses its profits first and foremost to achieve its primary objective is managed in an entrepreneurial, accountable and transparent way, in

particular by involving workers, customers and/or stakeholders

affected by its business activities.

Social

innovation

The process of developing new (combinations of) approaches or practices

for resolving societal challenges through mobilising civil society actors to

further inclusive, socially fairer and environmentally sustainable

economic development and social change. This includes re-designing and

re-engineering business models and value chains, new relationships or

collaborations between public, private and third sector organisations, and

delivery mechanisms for public policies

Impactinvestment

Financial activity which has an expectation of both a specified socialoutcome and an explicit financial return for its investors (usually below

market-rate). This could include a wide range of financial products.
http://en.wikipedia.org/wiki/Financial_institutionhttp://en.wikipedia.org/wiki/Fundinghttp://en.wikipedia.org/wiki/Fundinghttp://en.wikipedia.org/wiki/Financial_institution


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12. LEGAL COMMITMENTS

Successful applicants will receive two original copies of the grant agreement for

acceptance and signature. Both these copies must be signed first by the beneficiary and

then sent back to the Commission, which will then return one to the applicant once it hasbeen signed by both parties.

The grant agreement may include corrections and deletion of ineligibility costs or

activities made by the Commission therefore the applicant should carefully read the

whole agreement, and the budget and work programme sections in particular, before

signing and returning the copies to the Commission.

Please note that the award of a grant does not establish an entitlement for

subsequent years.

13. PROCEDUREFORTHESUBMISSIONOFPROPOSALS

Proposals must be submitted in accordance with the formal requirements and by the

deadline set out under sections 3 and 5.

Eligible organisations can apply for more than one activity under each of the four strands,

and for more than one strand. No modification to the application is allowed once the

deadline for submission has elapsed.

13.1.Electronic submission

The compulsory on-line grant application form is an electronic form which must be filled

by using the Internet Web system "SWIM" at the following internet address:

https://webgate.ec.europa.eu/swim/external/displayWelcome.do

This system allows the introduction, edition, validation, printing and submission of the

grant application form. Once the application is submitted electronically, a print out of an

exemplar has to be signed by the legal representative of the organization submitting the

proposal and be sent to the Commission as per point 4.2. After submission of the

application electronically no changes are possible.

At the above quoted web site other requested forms, the financial guidelines for

applicants and other useful documents can be found.

13.2.Submission on paper

Please send your covering letter of application, together with all the documents listed in

the checklist (annex to this document), as signed originals as well as one copy of all these

documents (in total: 2 sets of documents), either:

a) by post(date of postmark serving as proof of timely shipment) to the followingaddress

Call for proposals VP/2013/017

European Commission

Employment, Social Affairs and Inclusion Directorate-General

Unit EMPL-C.2 - J-27 06/062
https://webgate.ec.europa.eu/swim/external/displayWelcome.dohttps://webgate.ec.europa.eu/swim/external/displayWelcome.dohttps://webgate.ec.europa.eu/swim/external/displayWelcome.do


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1049 Brussels

Belgium

or

b) by courier service (date of deposit slip serving as proof of timely shipment) tothe following address

Call for proposals VP/2013/017European Commission


Unit EMPL-C.2 - J-27 06/062

Service central de rception du courrier

Avenue du Bourget, 1-2

1140 Brussels

Belgium

or

c) delivered by hand, in person or by an authorised representative (date of

acknowledgement of receipt by the Commission service serving as proof fortimely submission) to the following address

Call for proposals VP/2013/017

European Commission


Unit EMPL-C.2 - J-27 06/062

Service central de reception du courier

Avenue du Bourget, 1-2

1140 Brussels

Belgium

In case of hand-delivery, please keep a receipt as proof of submission, signed and dated

by the official in the Commissions central mail department who took delivery. This

department is open from 08.00 to 17.00 from Monday to Thursday and from 08.00 to

16.00 on Friday; it is closed on Saturdays, Sundays and on Commission holidays. Please

note that for security reasons, hand deliveries (including courier services) are not

accepted in other Commission buildings.

The European Commission will notify applicants once the evaluation procedure is

completed. Requests for information concerning the progress of dossiers sent before

the end of the evaluation procedure will not be answered.

Applicants will be informed in writing about the results of the selection process.Unsuccessful applicants will receive a letter stating the reasons for refusal.

13.3.Presentation of applications

Regarding the presentation of the application file, it is recommended to:

- follow the order of documents as listed in the checklist in Annex;

- print the documents double-sided, where possible;

- use only 2-hole folders (please do not bind or glue).

If an applicant submits more than one proposal, each one must be submitted separately.


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13.4.Contacts

Contacts between the awarding authority and potential applicants can only take place in

certain circumstances and under the following conditions:

a) Before the submission deadline

At the request of the applicant, the Commission may provide information solely

for the purpose of clarifying the nature of the call.Any requests for additional information must be made in writing by e-mail only

to the address given below. Requests for additional information should reach the

Commission at the latest 5 days before the deadline for submission. After this

date, the Commission does neither commit to provide a timely answer nor to

publish the corresponding information.

The Commission may, on its own initiative, inform interested parties of any error,

inaccuracy, omission or other clerical error in the text of the call for proposals.

Any additional information including that referred to above will be published on

the Internet in accordance with the various call for proposal-documents.

b) After the submission deadline

If clarifications or not substantial adjustments are requested or if obvious clerical

errors in the proposal need to be corrected, the Commission may contact the

applicant provided the terms of the proposal are not modified as a result. This is

generally done by email. It is entirely the responsibility of applicants to ensure

that all contact information provided is accurate and functioning. In case of any

change of contact details, please send an email with the new contact details to

[email protected].

Contact address: [email protected]
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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ANNEX

Checklist: The Evaluation Committee will not examine applications lacking one or more

of the following documents:

1Official covering letter of applicationquoting the reference number of the call for proposals (VP/2013/017) with

the original signatureof the legal representative of the applicant organization.

2

Print-out of the duly completed and submitted on-line application form, dated and with the original

signatureof the legal representative.

NOTE: The on-line form must first be electronically submitted before printing. After the electronic submission no

further changes to the application are possible. The detailed and signed print-out must be submitted as set in

section 13 of the specifications.

3

A signed declaration of honour(to be found on-line as an annex to the application form) to be provided by all the

applicants (lead applicant, and each co-applicant) and the affiliated entities, certifying that the entity is not in one

of the situations listed in Article 106 1 and 107 to 109 of the Financial Regulation as well as the financial and

operational capacity. This must have the original signature of the legal representative of each entity,

4

A letter of mandatefrom each co-applicant. This mandate must follow the template provided, be written on the

official letterhead paper of the organisation and have the original signature of the entity's legal representative. Itmust also be submitted electronically in annex to the on-line application form.

5

"Financial identification" formsduly completed by the lead applicant onlywith the original signatureof the

account holder and the original signature and stamp of the bank. The financial identification form can be foundannexed to the on-line application form.

NOTE: The bank account must be held in the name of the applicant. Applications cannot be accepted with an

account held in the name of an individual.

6

"Legal entity" formsfor the lead applicant and each co-applicant, duly completed with the original signatureof

the legal representative of the entity. The legal entities form can be found annexed to the on-line application form.

The lead applicant and co-applicants must also provide:

a copy of the certificate of official registration or other official documentattesting to the establishment of theentity (for public bodies, a copy of the law, decree or decision establishing the entity in question);

a copy of the articles of association/statutes or equivalent (if available) , proving the eligibility of the

organisation; a copy of a document confirming the applicant's tax or VAT number, if available .

7

A signed letter of commitment of each co-applicant and affiliated entity, explaining the nature of their

involvement (technical and financial).

Associate organisations should provide a signed letter of commitment , explaining the nature of their

involvement in the action or any other type of support to it. No letter of mandate is required.

Applications under strand Bshould include a letter of commitment from a private and/or public investor (lead applicant, co-applicant) that has committed itself to invest / co-invest in the financial instrument to be

established.

Applications under strand C should provide a letter of intentionfrom a potential investor willing to invest orco-invest in the financial products

These letters of commitment shall be annexed to the on-line submission form and shall be submitted in English,

French or German.

8A letter of commitment from a third party that has committed to make a cash contribution to any action

applying under any strand (if such contribution is available).9 Legal or capital link with the parent organisation - only for Affiliated entities.

10

The profit and loss account and the most recent balance sheetsof the lead applicant and each co-applicant (not

applicable for public bodies). The balance sheet, by definition, must include assets and liabilities. The entity shallspecify the currency used. For newly created entities, the business plan might replace the above-mentioned

documents.

11

A detailed description of work for the proposed action, including the time-table and the distribution of roles and

responsibilities between partner organisations (see also section 9 award criteria), signed by the legal representative

of the lead applicant. This document must also be provided as an annex to the on-line application. The detailed

description of the work program and should not exceed 25 000 characters.13 Written declaration on professional competence of the team.

14CVof the Project Manager and CV or description of the profile of people primarily responsible for managing andimplementing the action.

15References to related work or similar work undertaken over the past three years by the applicants, co-applicants,affiliated organisations or by experts that will be in charge of the action. (max. 20 000 characters)


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16 Additional documentsrequested for each strand under section 8.2 in the call.

Call for Proposals VP 2013 017 En

Documents

Transcript of Call for Proposals VP 2013 017 En