The Government announced a £1 billion Small Business Finance Scheme in the 2008 Pre-Budget Report in November, which went live on 14th January 2009 as the £1.3 billion Enterprise Finance Guarantee.
The introduction of this money should be used to support small business through the economic downturn.
Details of the Enterprise Finance Guarantee:
- Government will guarantee loans to 75 per cent
- Loans will have a life span of 3 months to 10 year maturity
- Businesses must have a turnover of no more than £25 million and find it difficult to access finance
- The value of loans through the Enterprise Finance Guarantee will be between £1,000 and £1 million
- The scheme is available until March 2010
Viable businesses who meet the above criteria may apply for these loans from Barclays, Clydesdale/Yorkshire Bank, HBOS, HSCBC, Lloyds TSB, RBS/Nat West and Northern Bank. Other banks may also apply to distribute the funds.
Are you finding it difficult to access finance for your business? Contact your bank today and enquire about the Enterprise Finance Guarantee.
All details for the scheme can be found on the following website:
Other announcements from the government include:
- A £10 billion Working Capital Scheme for businesses with turnover of up to £500 million
- A £75 million Capital for Enterprise Fund which will be issued as a debt-for-equity fund
- As stated in the Pre-Budget Report, businesses experiencing cash flow difficulties can get help from HMRC:
For fresh ideas, new possibilities and a value driven service go to Garside & Co LLP Chartered Accountants in London.