What is the Enterprise Finance Guarantee Loan?
The Enterprise Finance Guarantee Loan (EFG) is a loan guarantee scheme to encourage further lending to viable SMEs, whom have been turned down for normal commercial loans due to lack of security or a proven track record. It allows these turned down companies to still borrow money from approved lenders.The lender must be satisfied with the businesses ability to repay the loan, to engage in such a scheme. It is up to them to confirm eligibility. They must believe that the business proposal and concept is workable, with growth and succeeding potential.It is up to them to confirm eligibility. Almost all sectors are engaged in, as are most business purposes acceptable.Other eligibility factors are:Must be UK operating
Turnover of no more than £41m
Looking for finance between £25k and £1,200,000The government back the lender with a 75% guarantee against the outstanding facility balance – enabling a credit decision against a lender to be approved.Since 2009, when it launched, over 35,000 business loans have been provided with over £3.3bn of finance. In 2017, an extension to the scheme was launched, for a further four years, enabling us to guarantee up to £2bn lending over the period.Look out for companies who are EFG accredited lenders. Some are:Aldermore Finance
Compass Finance Group
Hitachi Capital (UK)
NEL fund Managers
Lloyds Bank
Metro Bank
Santander
DSL Business FinanceFor more information on the EFG, see the gov.uk website here
Read
What is the Enterprise Finance Guarantee Loan?