Enterprise Development Scheme 2018 (EDS)

Summary

The request sought detailed financial data on companies funded by the Enterprise Development Scheme 2018, including names, loan amounts, repayment terms, and returns. The Department for Enterprise disclosed the names of three funded companies and the total funding split but withheld specific individual financial details citing commercial sensitivity.

Key Facts

• Three companies received investment under the EDS 2018: E-Sign Limited, Xlabs Limited, and Flix Facilities IOM Limited.
• Total funding provided was £750,000, comprising £650,000 in loans and £100,000 in equity investment.
• Specific loan amounts, repayment terms, and individual repayment status were withheld.
• The Department cited Section 30(1)(a) of the Freedom of Information Act to exempt the detailed financial data.
• The exemption was justified on the grounds that disclosure would prejudice the economic interests of the Island.

Data Disclosed

• £750,000
• £650,000
• £100,000
• 2025-02-06
• 2025-03-05
• 31st January 2025
• October 2015
• January 2019
• Section 30(1)(a)
• Section 6 of the Enterprise Act 2008

Exemptions Cited

• Section 30(1)(a) of the Freedom of Information Act (Prejudice to economic interests)

Original Request

EDS was approved by Tynwald in October 2015 following a public consultation. In January 2019, the Department for Enterprise took over the administration of the Scheme, after the original (2015) Scheme was revoked and replaced by the Enterprise Development Scheme 2018 (EDS). Please can you tell me for companies funded through the Enterprise Development Scheme 2018 (EDS) the following:- 1. The name of each Company given an investment. 2. The amount each company was loaned / invested in and the repayment term. 3. How much of the loans have been re-paid? 4. What value of the loan repayments are overdue or late? 5. What is the estimated return on the investments in these Companies and how much has been realised to date? Thank you

Data Tables (1)

Data Tables (reformatted)

Full Response Text

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Freedom of Information Co-ordinator 1st Floor, St Georges Court Upper Church Street, Douglas Isle of Man IM1 1EX

Telephone: (01624 686400) Website: https://www.iomdfenterprise.im/

Our ref: 4429413 05 March 2025

Dear ###

We write further to your request, received 6 February 2025, which states:

"EDS was approved by Tynwald in October 2015 following a public consultation.

In January 2019, the Department for Enterprise took over the administration of the Scheme, after the original (2015) Scheme was revoked and replaced by the Enterprise Development Scheme 2018 (EDS).

Please can you tell me for companies funded through the Enterprise Development Scheme 2018 (EDS) the following:-

1. The name of each Company given an investment.

2. The amount each company was loaned / invested in and the repayment term.

3. How much of the loans have been re-paid?

4. What value of the loan repayments are overdue or late?

5. What is the estimated return on the investments in these Companies and how much has been realised to date?

Thank you"

Our response to your request is as follows:

1. The name of each Company given an investment.

The information requested is already publicly available, as under section 6 of the Enterprise Act 2008 (“the Act”) the Department for Enterprise (DfE) is required to lay an annual report before Tynwald as to the provision of assistance under the Act including a list of the names of those businesses which have received financial assistance from the Department during the previous financial year ended on the 31st March. Copies of these reports can be found here.

https://www.iomdfenterprise.im/enterprise-act-2008-annual-reports/

To be of assistance, the companies given an investment under the Enterprise Development Scheme 2018 (EDS 2018) are collated below:

• E-Sign Limited • Xlabs Limited • Flix Facilities IOM Limited

1. The amount each company was loaned / invested in and the repayment term.

Under the EDS 2018, a total of £750,000 was paid to the above companies comprising £650,000 in loans and £100,000 as equity investment.

The Department is not in a position to release the investment details for each of the businesses identified, unless that is already in the public domain as the Department considers this data to be commercially sensitive. The Department considers the application of an exemption under Section 30(1)(a) of the Act as disclosure would be likely to prejudice the economic interests of the Island.

The Department is responsible for providing financial support to business, for the wider purpose of encouraging the growth of the Isle of Man's economy. If the Department were to release the actual amounts provided to businesses, this may:

• put off businesses applying for financial support from the Island, as they may not wish the exact amount of support provided to them to be in the public domain. It would therefore be harmful to the economic interests of the Island;

• be harmful to the ability of the Department to negotiate effectively with businesses in terms of new applications for financial support under current live Schemes (noting the Enterprise Development Scheme is now closed)

• be harmful to the ability of the Department to negotiate arrangements to recover any outstanding funds if the repayment terms of all applicants was to be released which may prolong the return of funds to Treasury.

As Section 30(1)(a) is a qualified exemption, it is subject to a public interest test. The public interest must be something that is of serious concern and benefit to the public at large.

Factors in favour of disclosure:

Release of the information will promote public understanding and informed debate.

Factors in favour of withholding:

• The need to protect the commercial interests of the private sector, which plays an important role in the general health of the economy;

• The release of individual amounts of loan and equity support may put off businesses from seeking support from the Department;

• The release of individual amounts of loan and equity support together with repayment terms will provide current and future applicant businesses with information which could allow them to negotiate higher levels of support than otherwise, and may undermine the process;

In taking these factors into account the Department for Enterprise has determined that the factors in favour of maintaining the exemption outweigh the factors in favour of disclosing the information, and therefore the application of the exemption is justified.

1. How much of the loans have been re-paid?

As of 31st January 2025, loan repayments of £77,613.60 have been received (including interest) and additionally the £100,000 paid by way of equity investment has been repaid in full.

1. What value of the loan repayments are overdue or late?

The value of the loan payments that are overdue or late is £580,000.

1. What is the estimated return on the investments in these Companies and how much has been realised to date?

At the time of making investments, an estimate / forecast of expected return on investment was considered. In respect of the three companies who received funding through the Enterprise Development Scheme 2018, the total estimated return on investment was £1,015,613.60.

As stated above, to date £177,613.60 has been directly realised through repayment of loan and equity investments.

Additionally, under the terms of investments, the companies were required to expand employment opportunities in the Isle of Man and the creation of these new jobs is estimated to have delivered an additional £704,846 in indirect return on the investments, through Income Tax and National Insurance Contributions.

There are number of active investments made both under the Enterprise Development Scheme 2018, and the Enterprise Development Scheme 2015 which

continue to be managed by the Department and full information on return on investments will not be available until the portfolio has been closed.

Please quote the reference number 4429413 in any future communications.

Your right to request a review

If you are unhappy with this response to your freedom of information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post.

An electronic version of our complaint form can be found by going to our website at https://services.gov.im/freedom-of-information/Review . If you would like a paper version of our complaint form to be sent to you by post, please contact me and I will be happy to arrange for this. Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded.

If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on; 1. Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act 2015; or 2. Whether we are justified in refusing to give you the information requested.
In response to an application for review, the Information Commissioner may, at any time, attempt to resolve a matter by negotiation, conciliation, mediation or another form of alternative dispute resolution and will have regard to any outcome of this in making any subsequent decision. More detailed information on your right to a review can be found on the Information Commissioner’s website at www.inforights.im. Should you have any queries concerning this letter, please do not hesitate to contact me. Further information about freedom of information requests can be found at www.gov.im/foi.

I will now close your request as of this date.

This response took two and a half hours to complete.