SME lending 'reaches £84m' under Enterprise Finance Guarantee
Business news 21 Aug 2013
Recent figures suggest that lending to small and medium-sized businesses through the Enterprise Finance Guarantee (EFG) scheme totalled £83.66m in the second quarter of 2013, representing the highest level since the first quarter of 2011.
EFG is a loan guarantee scheme that aims to assist viable SMEs experiencing difficulties with obtaining finance, by providing banks with a Government guarantee for 75% of the loan value.
The EFG scheme is open to viable businesses operating in the UK, which meet the following criteria:
have a turnover of less than £41m
are seeking finance of £1,000-£1m
seek repayment terms from three months to 10 years
are operating in an eligible sector
According to the latest Government statistics, more than 12,400 SMEs have been offered EFG loans since May 2010, amounting to a total value of over £1.2bn. Lloyds Banking Group is reported to have lent almost double in the second quarter of 2013, when compared with the same quarter last year, and Santander has also significantly increased its EFG lending.
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