Enterprise Finance Guarantee Scheme
A faster, simpler way to raise finance

The Enterprise Finance Guarantee (EFG) is a targeted measure intended to facilitate additional commercial lending to viable SMEs unable to obtain a normal commercial loan due to having no or insufficient security.

EFG facilitates lending that would not otherwise be available by providing lenders with a partial guarantee.

Decisions on the use of EFG, eligibility, and lending terms in individual cases rest with the lender. There is no automatic entitlement to receive a guaranteed loan and nor is there any pre-qualification process for it.

Any loan application will first be assessed via the lender's own commercial criteria before any consideration of the EFG eligibility criteria.

On your behalf we will approach a number of lenders from our extensive list of providers to discuss your borrowing needs.

The following loan facilities may be used under EFG (repayable over terms between three months and ten years, except where indicated):

• New term loans (unsecured or partially secure).
• Refinancing of existing term loans.
• Conversion of an existing overdraft into a term loan.
• Invoice finance guarantee (available for terms up to three years).
• Overdraft guarantee (available for terms up to two years).

The precise nature and terms of any facility made available by individual lenders will vary in accordance with that lender's standard commercial lending criteria.

A premium (equivalent to two per cent per annum) is payable to the Department for Business, Innovation and Skills (BIS) in addition to regular capital and interest payments to your lender, and any arrangement fee which they may charge. It is not an insurance premium.

Lenders are allowed to require personal guarantee and/or security where available (except the borrower's principal private residence) in line with their standard normal commercial lending practices.

EFG is intended to support lending to viable businesses that can ultimately repay the loan in full. The government guarantee is a guarantee to the lender. Neither the guarantee nor the premium provides insurance for the borrower in the event of default. The borrower remains fully liable in the event of default.

VALUE
EFG will continue until 31 March 2015, enabling up to £600 million of additional lending in 2011-12, and over £2 billion in total between 1 April and 31 March 2015, subject to demand.

ELIGIBILITY
EFG can be made available (at the lender's discretion):

• To small and medium-sized businesses in the UK with an annual turnover of up to £25 million
• To businesses seeking loan facilities of between £1,000 and £1 million
• For terms of between three months and ten years
• For an eligible loan purpose

Loans for most businesses purposes to businesses in most sectors are eligible. A list of the main sector restrictions is on the BIS website.

EVALUATION
Businesses will need to provide all the information normally required by a lender in connection with a loan application, which will generally involve completing their application form and providing supporting information, typically including your:

• Current business plan, including details of the purpose for which the loan is required and details of other investment in and financial commitments of the business.
• Financial projections.
• Historic trading figures.
• Statutory and management accounts.
• Information on any other publicly funded support received by your business within the past three years.

ADDITIONAL INFO
Enterprise Finance Guarantee has replaced the Small Firms Loan Guarantee scheme.