PART 3TERMS AND CONDITIONS OF ACCREDITATION

Meaning of “qualifying enterprise”I110

1

For the purposes of these Regulations an enterprise is a qualifying enterprise if—

a

the enterprise is a small or medium-sized enterprise;

b

the CDFI can demonstrate that at the time the investment in the enterprise was made the enterprise was unable to obtain finance from other sources; and

c

the enterprise falls within one of the following Cases.

  • Case 1

    The enterprise is located in a geographic area identified in Annex A of the Material Concerning the Accreditation of Community Development Finance Institutions published by the Secretary of State.

  • Case 2

    The enterprise is located in an area which the CDFI, by reference to Government-recognised measures of disadvantage relating to—

    1. i

      income;

    2. ii

      employment;

    3. iii

      health, deprivation and disability;

    4. iv

      education, skills and training;

    5. v

      geographical access to services, and

    6. vi

      housing,

    can demonstrate has a level of disadvantage comparable to those identified in Annex A of the Material Concerning the Accreditation of Community Development Finance Institutions published by the Secretary of State.

  • Case 3

    The enterprise is owned and operated by, or intended to serve, individuals recognised as being disadvantaged on account of their ethnicity, gender, age, disability or other similar defining characteristic.

2

For the purpose of paragraph (1)(a), a “small or medium sized enterprise” shall be interpreted in accordance with paragraph 2 of Schedule 20 to the Finance Act 20002.