has been announced by the Government that until
March 2010 there is going to be a new
initiative, the Enterprise Finance Guarantee
Scheme (EFG), which will help companies with a
turn over of up to £25 million. Loans of up to
£1 million are possible, with 75% guaranteed by
the Government and 25% at the banks’ risk. This
will of course be based on the applicants
meeting certain criteria and for companies that
There are some big upgrades to this scheme
compared to the
Small Firms Loan Guarantee Scheme with more
companies eligible and the loans potentially
bigger. In addition, the SFLG could not be used
to cover debt, and many of our clients seek a
way of consolidating debt lines and this was
impossible to do with the old scheme.
What is Enterprise Finance Guarantee Scheme?
This is the Government's new EFG scheme: £1bn will
join with up to £1.3bn of new lending by banks to
Which companies will benefit?
The EFG Scheme is for companies with an annual
turnover of a maximum of £25m, seeking loans of £1,000
to £1m, which can be repaid over a period of up to 10
Most companies in most sectors will be eligible for
the scheme, except state aid rules exclude businesses in
the agriculture, coal and steel sectors.
What kinds of lending will this cover?
The EFG scheme can be used to support refinance
existing loans, new loans or to convert part or all of
an existing overdraft into a loan to release capacity to
meet working capital needs.
How much of the loan is the Government going to
The Government will guarantee 75 per cent of the
loan, the remaining 25% is at the banks’ risk.
How long will the scheme run for?
EFG will be available available until March 2010.
Who are the participating lenders?
Clydesdale / Yorkshire Bank
RBS / Natwest
Other lenders will be come eligible as they apply.
Strategy Corporate Finance has many years experience
of helping clients obtain Government Loan Guarantee
Schemes, with a success rate of over 90%.
We can only help with funding and advice for sums
over £50,000. For enquiries below £50,000, please
contact your nearest