loans for small firms

Businesses whose directors have no available assets

The Enterprise Finance Guarantee scheme launched in January 2010 to provide up to £1 billion of new lending by banks to viable SMEs with working capital or investment needs.

The scheme replaces the Small Firms Loan Guarantee Scheme and is open to businesses with turnover of up to £25m, seeking loans of £1,000 to £1 million, repayable over a period of 10 years.

The government will guarantee 75 per cent of the loan, which is available to most businesses. Agricultural, coal and steel companies are excluded.

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.

EFG will be available from Wednesday 14 January 2010 and will operate until March 2010.