Coverage: Blackburn with Darwen, Blackpool, Burnley, Chorley, Fylde, Greater Manchester, Hyndburn, Lancaster, Pendle, Pennine Lancashire, Preston, Ribble Valley, Rossendale, South Ribble, West Lancashire, Wyre,
Launched on 20th March 2012, this new scheme enables eligible businesses to access cheaper loans from participating banks. The participating banks are;
The Government is using the UK’s budget credibility in financial markets to provide guarantees on up to £20 billion of unsecured borrowing by banks. This will enable participating banks to borrow at a lower rate, and these banks will pass on the entire benefit they receive to smaller businesses through cheaper loans.
This means that businesses that are granted an NLGS loan by their bank will receive a discount on their loan of 1 percentage point compared to the interest rate that they would otherwise have received from that bank. The scheme is open to businesses with turnovers up to £50m and applies to new term loans, hire purchase and leasing arrangements.
Note: Interest rates on NLGS loans may vary between banks as each bank operates their own pricing models and are still subject to banks’ usual lending criteria.
Funding: Individual banks will determine the minimum and maximum amounts that businesses can borrow under the scheme, subject to State aid constraints. Participating banks are able to offer NLGS discounts on new term loans, hire purchase and leasing arrangements. The minimum term for a loan will be 1 year.
Type of Funding: Loan
Project Timeframe - Expiry Date: n/a
Eligibility: Businesses can register their interest at participating banks now and banks will consider applications in due course. Banks retain the sole responsibility for making decisions on loan applications, and will follow their normal lending criteria. The Government does not have any role in making decisions on loan applications.