Many Rivers COO Loan Arrears Letter Borrowing Entity Name

MANY RIVERS NATIONAL PROGRAM

About Us Many Rivers is a not-for-profit microenterprise development organisation that works with marginalised and disadvantaged Australians, primarily in regional and remote communities. Many clients are seeking to move from welfare dependency to self-reliance and to making a valuable contribution to their communities and to the broader economy.

Many Rivers commenced operations in April 2008 from Grafton NSW and has grown to 16 Field Officers in 14 locations in New South Wales, Western Australia and Queensland.

Our clients that require microfinance are provided with a business loan from Westpac. This gives clients “a real loan with a real bank”.

Since commencing operations, we have supported 584 businesses (658 business owners):  385 (66%) of these businesses are still operating;  59 (10%) have ceased business to take up employment;  Of the 658 business owners, 365 (55%) are Indigenous and 282 (43%) are female;  We have provided 595 loans totalling $3.2 million and maintained a 89.8% loan repayment percentage; and  We are currently meeting and business planning with 286 clients and are actively managing 336 current loans.

Our Approach We have a saying that “people best learn business by doing business”. Our goal is to support and enable our clients to start enterprise and then to journey with them as they develop their businesses and their business skills. If required, we also provide small repeat loans to those who cannot access traditional financial support. We only recognise that we have supported a client into business when the first income is generated.

We believe our approach is distinctive in four key areas:  Local enterprise development – We live and work in the communities where we operate;  Practical business support – We focus on what needs to be done to enable the business to get started;  Access to finance – We provide access to unsecured business loans and are providing access to other products and services to eliminate barriers for our clients; and  Journey with clients – We walk alongside our clients, providing ongoing support and encouragement.

…………………….………………………….………………………….………………………….………………………….………………………….………………………….………… Local enterprise development | Practical business support | Access to finance | Journey with people ABN 58 128 486 788 | CFN 21914 Many Rivers leverages its not-for-profit status to take the time to journey and support clients before they start business and once they are in business. Six-monthly, or more frequently if required, we review the progress of our clients’ businesses to provide further business support and encouragement.

80% of businesses supported are sole traders with approximately 1.5 people employed per business. Many Rivers has also provided support to businesses that have become medium-size enterprises. Two examples are: a labour hire/machinery hire business in the Pilbara with 2 partners and 45 employees with a monthly turnover of $1 million; and a coffee shop in Newcastle with 3 owners and 15 casual staff with monthly income of $83,000.

Whilst we work with individuals, we recognise that it is important to engage the support of local communities and leaders. This is especially important in regional and remote communities. Before we commence operations in a region we seek to build relationships with the community and determine that there is support for our microenterprise development services.

Our Program Many Rivers has developed a National Program to establish offices in 20+ regions across Australia operated by 35+ Field Officers. We currently have 14 operational offices in the following regions: 1. NSW North Coast: Grafton 8. NSW Northern: Moree 2. NSW Hunter Valley: Kurri Kurri 9. WA Metropolitan: Perth 3. WA Pilbara: South Hedland 10. QLD Cape York: Cairns 4. WA East Kimberley: Kununurra 11. NSW Central: Condobolin 5. WA Pilbara: Karratha 12. QLD Central: Gladstone 6. WA Goldfields: Kalgoorlie (including Wiluna) 13. QLD Central: Bundaberg 7. NSW Western Sydney: Blacktown 14. WA West Kimberley: Broome Our Head Office is in Sydney. Barriers to Economic Participation and the Need for Innovation We are a flexible organisation continually innovating and responding to challenges. When the credit barrier was removed, we identified other barriers to economic participation. In response, we have:  Accessed pro bono legal services for clients through Squire Patton Boggs who provide legal support for issues such as contract negotiations, business structures, etc.  Commenced a “Small Business in Schools Competition” program in Western Australia in the regional/remote communities that we work to assist students to explore transition to work options. This has grown to 14 teams from 10 schools participating this year.  Launched our “Introduction to Business Workshop” in Parklea Jail; and  Conducted a “Remote Product Distribution” pilot in Western Australia in December 2013 sourcing product from regional communities into a Perth “pop-up shop” utilising our network of strategic partners. Improving access to the greater Australian market for business owners in remote communities will stimulate regional economic growth and create improved social benefits. A Sydney pop-up shop was successfully conducted in June and 2 more are slated for November this year.

Many Rivers has also identified other services required by our clients, including:  A low-cost basic book-keeping service;  Access to affordable life and funeral insurance; and  Access to counselling support services.

These responses continue to be developed by Many Rivers.

Access to Credit 79% of Many Rivers’ clients have required loans to commence their businesses. Since commencement we have provided 595 loans totalling $3.2 million. Many Rivers provides clients 3 with access to unsecured business loans through our relationship with Westpac. Loans are assessed based on character, capacity and cashflow and whether the business displays the characteristics of a good micro/small business.

Should any loans become “out of order” with Westpac for more than 90 days, Many Rivers repays the outstanding loan balance to Westpac. In return, Westpac passes the legal title for the loan to Many Rivers and we continue to journey with the client to help them continue in business or to exit the business well.

A typical first loan is between $500 and $5,000, with a term of 12 months. Larger loans up to $20,000 can be obtained as the client builds a track record of business performance and loan repayment. Since commencement, our loan repayment percentage has been 89.8%.

Evaluation and Reporting In 2012 Many Rivers engaged Deloitte Access Economics to design an economic and social evaluation model for Many Rivers. The model is outcomes-based, measuring the number, sustainability and success of the businesses established, as well as the long-term benefits achieved by clients and their communities.

During 2013, Accenture, through its pro bono “Skills to Succeed” program, designed and implemented our client management system, Compass. Compass seamlessly integrates our evaluation model with the way we work with clients. This has virtually eliminated the cost of data collection and reporting.

In November 2013, Deloitte Access Economics independently reviewed our progress and confirmed that Many Rivers is supporting marginalised and disadvantaged people and that there is evidence that these people are establishing sustainable businesses.

Aligned Organisations and Funding Partners Many Rivers has developed a unique network of national and regional strategic partners. Our approach encourages collaboration within and across industries and brings together the philanthropic, corporate and government sectors, creating a multiplier effect for achieving “grass roots” economic and social outcomes.

Since commencement, Many Rivers has had a strategic relationship with Mission Australia. We leverage the scale of Mission Australia’s support functions (e.g. finance, HR, IT&T, car leasing and property).

Since 2009, Many Rivers has provided clients with access to business loans through our relationship with Westpac, providing clients with “a real loan from a real bank”.

In 2012, Many Rivers commenced providing clients with access to pro bono legal services provided by Squire Patton Boggs.

In 2014, Many Rivers will be assisted by law firm Gadens for loan debt recovery on a pro bono basis. Debt recovery is restricted to situations where clients have breached their trust-based relationships with Many Rivers. Where clients’ businesses struggle and/or fail, but the relationships remains strong, Many Rivers’ continues to journey with these clients to ensure they are able to continue in business or to exit well.

…………………….………………………….………………………….………………………….………………………….………………………….………………………….………… Local enterprise development | Practical business support | Access to finance | Journey with people ABN 58 128 486 788 | CFN 21914 Our goal is to engage with partners that have a long-term strategic rationale for working with Many Rivers that leverages the strengths and purpose of each partner organisation.

In 2013/14 our funding mix was:  Philanthropic donors: 17%;  Corporate partnerships: 43%;  Indigenous corporations: 8%;  State government: 9%; and  Federal government: 23%.

Structure: How We Operate Many Rivers is a company limited by guarantee and regulated by the Australian Securities and Investment Commission (ASIC) and the Corporations Act 2001. It is also a registered charity with the Australian Charities and Not-for-profits Commission under the ACNC Act 2012. Although a controlled entity of Mission Australia for financial reporting purposes, Many Rivers’ strategic and business decisions are taken by its own Board of Directors. Mission Australia also provides Many Rivers with access to its support services and infrastructure, including finance, HR, legal, property, IT, telephony and procurement services. As a company limited by guarantee, Many Rivers does not have any share capital or shareholders, just members. Any funds raised by Many Rivers cannot be shared amongst members, but only to further the company’s charitable purposes for the benefit of the communities we serve. Our members include seven individuals and one corporate member who sit on the Board of Directors: Mr Peter Colin Cadwallader (Chairman), Mr John Burn (CEO), Mr David Thomas Bussau, Mr Ronald Leigh Coleman, Mr Ross Granville Hawkey, Mr Sinclair Taylor, Mr Terry Winters and Mrs Catherine Yeomans (CEO, Mission Australia).

Governance and Legislation Many Rivers has its own Constitution. The Board of Directors adopt the principles, procedures and practices from the Board Governance Charter that include mechanisms to deal with real or perceived conflicts of interests and establish the governance oversight relationship between the Board and Management. Many Rivers has a Conflict of Interests Policy, Code of Conduct, Risk Management Policy and framework, Whistle blowing Policy and Delegation levels, fraud control and corruption prevention strategies along with administrative policies and practices.

Tax Status Many Rivers Microfinance Limited is a Public Benevolent Institution. This means that it is a non- profit institution organised for the direct relief of poverty, which carries out services for the public benefit. Because of its charitable status, Many Rivers is endorsed to access tax concessions such as exemption from paying income tax and some Fringe Benefits Tax (FBT) relief.

Deductible Gift Recipient (DGR) Status Many Rivers Microfinance Limited is endorsed as a deductible gift recipient, so any donations made to it will entitle the donor to a tax deduction.

Contact For more information please contact: Many Rivers Microfinance Ltd Level 7, 580 George Street SYDNEY NSW 2000 5

John Burn Leigh Coleman Chief Executive Officer Executive Director M 0416 099 585 M 0411 468 194 [email protected] [email protected]

30 July 2014

Principal Partners

National Partners

WA Region Partners

QLD Region Partners

NSW Region Partners