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EASIER LENDING?
Page 41
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Enterprise Finance Guarantee aims to help business borrowing A s well as the Bank of England's quantitative easing to return liquidity to the marketplace, the government introduced the E1.3bn Enterprise Finance Guarantee (EFG). The scheme is available to firms with up to £25m turnover and will essentially guarantee:
• New term loans of between one and 10 years.
• Existing lending where lenders might not otherwise refinance the debt.
• Conversion of part or all of an existing utilised overdraft into a term loan in order to release capacity in the overdraft to meet working capital requirements. This is conditional on the lender being prepared to continue to provide an overdraft, and the viability of both the term loan and the overdraft.
The guarantee will fund either working capital or investment by businesses seeking to grow or develop. Initially, there was a lot of confusion about the scheme and many firms were rejected.
However, the government says £750m of the money is still available, so if you need funding go back to your bank and ask to be considered for EFG eligibility.