Cultural Heritage Seed Fund

OVERVIEW

HEVA established a short term seed fund facility looking to support and stimulate culture and heritage startups in Kenya, in collaboration with the British Council. This fund intended to create inclusive development of cultural communities by working directly in music, film, fashion, crafts, gaming and performing arts, as well as tourism projects which celebrate and preserve heritage.

TERMS

his fund is a loan facility targeted debt investments to be deployed for a maximum of four (4) years in each business which makes a successful application. Businesses applied for a minimum of USD 20,000 and a maximum of USD 50,000. This debt facility was available in several forms for flexibility to several types of business needs:

• Term loans (up to 48 months): This term loan offered for 12-48 months, with a moratorium of 3 months before the payment period begins.

• Lease to Own: For a specific asset that the beneficiary needed to acquire for the business, such as a particular machine, equipment etc. The beneficiary was be able to use the asset while paying for it. Upon completion of payment ownership is transferred fully to the beneficiary.

• LPO Finance: This enabled businesses with pending or possible purchase orders, who do not immediately have the liquid working capital to buy materials or hire needed assistance, to meet the needs of the order. In this short term facility, financing was advanced for the beneficiary to meet these working capital needs.

• Line-of-Credit: Some enterprises have rolling working capital needs: for purchase orders, inventory replenishing, new hires or consultancy requirements, expansion and more. This facility moved a pre-approved amount of financing that an organisation could access at any time, allowing them to get these matters sorted out.