Enterprise Finance Guarantee

Coverage: Blackburn with Darwen, Blackpool, Burnley, Chorley, Fylde, Hyndburn, Lancaster, Pendle, Pennine Lancashire, Preston, Ribble Valley, Rossendale, South Ribble, West Lancashire, Wyre,

Finance Type: Business Expansion,

Summary:

The aim of the scheme is to facilitate additional commercial lending to viable UK based SMEs with no or insufficient security to obtain a normal commercial loan facility.

The Enterprise Finance Guarantee (EFG) facilitates additional bank lending to viable Small & Medium Sized Enterprises (SMEs) which lack the security to secure a normal commercial loan. The Government provides the lender with a guarantee for which the borrower pays a premium. Accredited lenders administer EFG and make all decisions on lending.

There are a variety of types of loan facilities available:

-          New term loans (unsecured)

-          New term loans (partially secured)

-          Refinancing of existing term loans

-          Conversion of part of all of an existing utilised overdraft

-          Invoice Finance Guarantee (Available for terms up to 3 years)

-          Overdraft Guarantee (Available for terms up to 2 years)

An EFG accredited lender may not necessarily offer all the eligible types of facilities if to do so would be incompatible with their normal commercial lending practices.

The turnover of the company must be up to £25 million per annum

Process:

The lender will typically assess the business against their normal commercial lending criteria for instance with regard to the viability of the business, the ability to service the loan, and the availability of existing security, in order to determine whether they wish to lend. Where a lender determines that use of EFG likely to be appropriate, they confirm eligibility and record details of the borrower and their facility via a secure web portal through. However, there is no automatic entitlement to receive a guaranteed loan and nor is there any pre-qualification process for it. Decision-making on individual loans is fully delegated to participating lenders and integrated with the commercial decision to lend. BIS plays no role in the application or decision making process.

Funding: Loans available from £1,000 to £1 million for companies with a turnover of up to £25m.

Type of Funding: Loan

Project Timeframe - Expiry Date: Tuesday 31st March 2015

Eligibility: Small & Medium Sized Enterprises (SMEs) which lack the security to secure a normal commercial loan.

Disclaimer: The information above was accurate at the time of publishing. This is a constantly evolving directory and we will amend the details as and when required. Regenerate Pennine Lancashire is not responsible for the accuracy of external information.

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