Business ministers have welcomed the Business and Enterprise Select Committee report that the Enterprise Financial Guarantee (EFG) has seen thousands of businesses benefit from the government guaranteed loan.

The loan was introduced six months ago, and over half a billion pounds worth of applications have been granted or are in the process of being assessed by banks.

Business minister Shriti Vadera said:

 “I welcome this report and the recognition that EFG is helping viable small businesses through this difficult economic time. 

“I also welcome the committee’s interest in testing experience of businesses with their banks. We will also continue to monitor uptake and performance of the banks to ensure EFG plays its part in getting access to finance for small and medium businesses. 

“I encourage any small and medium business experiencing difficulty in obtaining a loan or overdraft to talk to banks about the possibility of using the EFG.”

Go With The Flow

Over four thousand businesses have been offered the EFG loan, and have borrowed the around £400 million between them.

This comes after Januarys changes to the eligibility rules to apply for the loans following the onset of the recession. These changes allowed many more small businesses to borrow, and in the second quarter of this year the government lent £197 million – four times the amount as the same quarter last year.

Green Energy Options Limited in Cambridge borrowed £1 million from the Government in March in order to help secure a contract with British Gas worth millions.

Patrick Caiger-Smilh of the company said:

 “This contract is a milestone in the company’s history. Since inception we have aimed to promote energy awareness amongst the consumer, business and education markets in the UK and Europe, and this contract extends our reach into new markets which provide real opportunities for us.

“In today’s tough environment there was some trepidation about raising the level of funding required but we have been delighted by the response from NatWest and the flexibility the structuring of the loan under the EFG scheme provides.”

Since EFG was launched in January, the government has worked with participating leaders to improve the scheme so it can change with the needs of small  businesses during the recession and once the recession is over.

The EFG also complements other help for businesses offered by the government including Time to Pay, Train to Gain, and Free Business Links ‘health checks’.

What Do You Think?

Does your business have one of these loans? Would you consider one, and why or why not would you ask for one? We would love to know your thoughts and opinions. Leave your comments here.

Bookmark Us
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Google
  • Reddit
  • StumbleUpon
  • TwitThis

Our Random Articles

More Links