MORE than £250 million has been loaned to Scottish companies from the British Business Bank’s flagship Enterprise Finance Guarantee (EFG) programme, it has been revealed.
The programme has provided 1,933 loans to small businesses in Scotland, representing an average value of about £130,000.
The loans have been made to smaller business in sectors as diverse as retail to construction, the arts to support services.
EFG enables lenders to make loans of between £1,000 and £1.2m for smaller businesses who would have been – or already have been – turned down for a loan or other form of debt finance because they are not able to provide sufficient security for the loan.
Launched in January 2009, the programme provides its accredited lenders, of which there are currently more than 40, with a Government-backed guarantee for 75 per cent of the loan value.
Across the UK, 28,300 loans have been issued through the programme, totalling more than £3bn.
Reinald de Monchy, British Business Bank, managing director, guarantee and wholesale solutions said: “The Enterprise Finance Guarantee is an important option for smaller businesses who need access to finance to grow, but struggle to meet the lender’s normal security requirements. £3 billion in lending is a major milestone for the programme, making a real difference to the many thousands of businesses it has supported.”
Margot James, the small business minister, said: “Building an economy that works for all is an important part of our Industrial Strategy, which is creating the conditions for businesses to start up and grow right across the country. Today’s £3 billion lending milestone shows just how much Government support is available to help ensure small businesses get the access to finance they need to succeed.”
The British Business Bank is wholly owned by the UK Government. It was established in 2014 to make finance markets for smaller businesses work more effectively.
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