Government aid for Businesses to secure bank funding
- The £1bn Enterprise Finance Guarantee (EFG) Scheme will support up to £1.3bn of new lending by banks to viable Small to Medium Enterprises (SMEs) with working capital or investment needs.
- The EFG Scheme is open to businesses with an annual turnover of up to £25m, seeking loans of £1,000 to £1m, repayable over a period of 10 years.
- Most businesses in most sectors will be eligible for the scheme. However, state aid rules exclude businesses in the agriculture, coal and steel sectors.
- The guarantee can be used to support new loans, refinance existing loans or to convert part or all of an existing overdraft into a loan to release capacity to meet working capital needs.
- Government will guarantee 75 per cent of the loan.
- EFG will be available from Wednesday 14 January 2009 and will operate until March 2010.
For more details download our EFG fact sheet below or contact Stephen Fox on 01225 428114 or Email s.fox@robsontaylor.co.uk
EFG Fact Sheet
Date:12 March 2009
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