Lodz Regional Development Agency FINANCING ACTIVITIES OF A REGIONAL DEVELOPMENT AGENCY WITH THE LODZ REGIONAL DEVELOPMENT AGENCY AS AN EXAMPLE 2nd European Congress of CEEC Development Agencies 11 – 13 June 2001, Lublin (PL)

Łódzka Agencja Rozwoju Regionalnego SA Lodz Regional Development Agency (LRDA) ul. Tuwima 22/26 tel. 0-42 632 18 92 fax 0-42 633 07 63 http://www.larr.lodz.pl e-mail: larr@mazurek.man.lodz.pl President of the Board: Paweł Żuromski

Lodz Region (since 1 January 1999). Statistic data: area (sq km) population (thousand). Lodz Region Poland 18 219 5,8% 2 663,6 6,9% 312 685 100% 38 667,0

Characteristic of the regional SME sector. Lodz Region 203.115 99,85% 0,6 mln 72,66% Poland 2.546.405 99,76% 6,9 mln 61,10% Total number of SMEs Share in the total number of enterprises Number of employees in SME Share of employees in SMEs total number of employees 1

Local and Regional Funds Loan Funds Kutno Łódź kutnowski łęczycki łowicki poddębicki zgierski sieradzki radomszczański pajęczański wieluński wieruszowski zduńskowolski łaski bełchatowski opoczański piotrkowski tomaszowski łódzki wschodni rawski skierniewicki pabianicki Piotrków Trybunalski Poddębice Tomaszów Mazowiecki Zelów Kleszczów Łódź Guarantee Funds Zelów

Lodz Regional Development Agency WHO WE ARE ... LRDA is a joint stock company set up in 1992 as an initiative of regional authorities and with the assistance of public institutions and private entrepreneurs. LRDA carries out a wide range of activities relating to the economic development of the Lodz Region and its enterprises. LRDA is a leader in the field of promotion and implementation of the regional development projects in accordance with European Union standards.

Lodz Regional Development Agency SHAREHOLDERS OF THE LRDA... Public institutions: Agency for industrial Development City of Lodz Lodz Voivodship Ozorkow Commune Radio of Lodz Commercial banks Private entrepreneurs Initiation share capital - 2.050.000,-PLN

Lodz Regional Development Agency WHAT WE DO .... Support for the development of small and medium enterprises by financial instruments, training and advisory services; Services for regional institutions: advice for communes in the field of development and implementation of local strategies, advice concerning access to foreign assistance programmes, feasibility studies for infrastructure projects, trainings for local authorities; Management of the PHARE programmes and promotion of the EU structural policy; Economic promotion of the Lodz Region and assistance for investors..

Financial Instruments managed by LRDA: Financial Instruments for SME in the Lodz Region Financial Instruments managed by LRDA: Loan Fund for Investment Projects Guarantee Fund for SME

LRDA’s Loan Fund – financial resources The Loan Fund for investment was established on the basis of the state budget reserve for the support of regional restructuring programmes. 1996 - start of the Fund activities Financial resources of the Fund 1996 - I grant from the state budget - 3,0 mio PLN 1997 - II grant from the state budget - 3,1 mio PLN Interest revenues - 1,9 mio PLN Total - 31.12.2000 . - 8,0 mio PLN

LRDA’s Loan Fund - statistic Loans granted in 1996 - 2000 TOTAL Number of loans granted - 147 Amount of investment (thousand PLN) - 66.606,1 Amount of loans granted (thousand PLN) - 21.480,8 Creating new jobs (declared) - 2.050

LRDA’s Guarantee Fund for SMEs The Guarantee Fund for SMEs was established on the basis of financial resources of Municipality of Lodz and LRDA. 1996 - start of the Fund activities Financial resources (thousand) Grant from the Municipality of Lodz - 50,0 PLN LRDA’s capital - 100,0 PLN Interest revenues - 50,3 PLN Total (31.12.2000) 200,3 PLN

Grant Scheme of the PHARE-STRUDER The Lodz Region Total amount of grants - 7.592.475 EUR Number of application - 346 Number of grants obtained - 235 Number of new jobs created - 2.786