Enterprise Finance Guarantee

A finance option for SME businesses

The Enterprise Finance Guarantee (EFG) is an initiative developed by the Department for Business, Enterprise and Regulatory Reform (BERR) which guarantees 75% of the total loan value to the approved lender.

This scheme allows approved lenders, including the Bank of Scotland, to lend to small businesses that may have had difficulties in obtaining the regular financial support options available to SME businesses, particularly those who can not provide or have insufficient security.

Key Features

  • Secure finance from £1,000 to £1,000,000
  • Terms of 1 to 10 years
  • Fixed or variable interest terms
  • Repay in full or part throughout the term (subject to fees)
  • Capital only repayment holiday of up to 2 years may be available
  • Scheme available until 31st March 2010

The boost to your cash flow can be used to help support the growth of your business. This may mean simply paying off your existing Bank of Scotland overdraft or term loans, allowing you the working capital to manage your cash flow more effectively.

The funding could also be used to help you invest in the vehicles, systems, equipment, machinery or other assets you need to compete more effectively in your market place.

We will agree the interest rates and arrangement fee, plus a premium of 2% per annum (1.5% in 2009) is payable to BERR on a quarterly basis based on the outstanding balance on the loan will be charged.

Who is able to apply for the Enterprise Finance Guarantee scheme?

The scheme is available to SME businesses that have a turnover of up to £25 million.

It should be noted applicants who have assets/property which cover the full amount will not qualify for unsecured funding, though partial funding may be available.

There are also a number of sectors who are ineligible for the scheme these include:

  • Aquaculture (Fish Farming)
  • Banking finance and associated services
  • Coal
  • Commission Agents
  • Formal Education
  • Insurance and associated services
  • Owning and dealing in real estate
  • Professional sports players and sporting organisations
  • Public Administrations, national defence and compulsory social security

For further information and to find out if the scheme is suitable for you please visit the BERR website
www.berr.gov.uk (opens new window)

Alternatively please speak to one of our colleagues on
0845 8 505 808†.
Lines are open Monday to Friday 9am-5pm (except Wednesdays 9.30am-5pm)

Useful Links

Department for Business, Enterprise and Regulatory Reform
EFG website (opens new window)

Business Link
This will provide further information on the scheme and a helpful assessment tool to see if the scheme is suitable for you.
www.businesslink.gov.uk (opens new window)

†We monitor and record telephone calls to help us provide a higher level of service

The provision by us of a website address is not evidence of any endorsement by us of the material held there. We accept no responsibility or liability for the privacy of your personal information on such websites, as these are beyond our control. We will accept no responsibility or liability in respect of any materials on any website that is not under control.