Enterprise Finance Guarantee (EFG)
What is it?
A government led initiative to support small and medium sized businesses that have viable business plans, but lack the level of security normally required for a standard credit facility.
An EFG loan provides a 75% Government‐backed guarantee on any individual loan. The loan terms range from 3 months up to 10 years and have a maximum value of £1m.
An EFG loan is available to most types of business with a turnover below £25m per year. It does not support export transactions, which are covered by the EXEFG scheme. The scheme can be used to obtain a new loan or to refinance existing loans.
The EFG scheme can be used to cover some trade facilities such as letters of credit, but precludes direct support for export contracts.
What are the benefits?
- Eligibility is very simple to establish
- Provides an alternative source of funding for businesses without the necessary security for a commercial loan.
- Secured and unsecured loans are available.
Where can I find out more?
Details about the scheme and the application progress can be found on the Department for Business’ website (http://www.bis.gov.uk/policies/enterprise-and-business-support/access-to-finance/enterprise-finance-guarantee/efg-application-process) or by contacting your local corporate bank.
Further details on the ExEFG scheme can be found here.
Download the factsheet in PDF format - here.