Investment by community development finance institutions (CDFIs): Guaranteed investments
SI2003/96 Schedule 1(1)
Any investment by a CDFI that benefits directly or indirectly from the security which was offered by a Phoenix Fund guarantee or any similar publicly-funded underwriting or guarantee arrangement is not a relevant investment for the purposes of SI2003/96 Regulation 8 .
An investment is not a relevant investment if it benefits directly or indirectly from the security offered by publicly-funded loan guarantee schemes which provide 100% guarantee
, similar to the Phoenix Fund Guarantee. (see CITM3030)
Investments covered by the Enterprise Finance Guarantee - and other publicly backed UK or EU loan guarantee schemes where both loan and portfolio risk is shared by the investor - may be eligible – however, users of such schemes should satisfy themselves that they continue to fulfil any other applicable eligibility criteria, are in compliance with any other relevant State aid restrictions and fulfil relevant reporting requirements.
The Phoenix Fund was managed by the Department for Business, Innovation & Skills’ Small Business Service with the aim of encouraging entrepreneurship in disadvantaged areas. The Phoenix Fund closed on 31 March 2006. After this date the responsibility for CDFI business support devolved to the regional development agencies in England. The devolved administrations in Scotland, Wales and Northern Ireland have their own arrangements.