Four new lenders have been accredited to offer loans to small businesses under the Enterprise Finance Guarantee (EFG) scheme, the government has announced.
The EFG provides small and medium-sized enterprises (SMEs) that lack the collateral or credit history to secure a normal bank loan.
The four new lenders, announced on 16 February, are:
- Metro Bank
- Hull Business Development Fund
- Black Country Reinvestment Society
- MSIF (providing finance to SMEs in Merseyside).
The government has also announced a new accreditation round, which will open on 1 March 2012, and is inviting lenders to apply for accreditation to offer EFG loans.
Business and Enterprise Minister Mark Prisk said: “If businesses are to start, thrive and grow they must have access to the finance they need, and the Enterprise Finance Guarantee gives more firms the chance to get vital funding. These four new lenders will help widen access to this successful scheme even further.”
“The Government has committed to guaranteeing £2 billion of loans over the four years to April 2015, and we are now opening another accreditation round to encourage even more lenders to offer these loans. The scheme has already supported more than 16,000 businesses and we can support many more.”
EFG is available to businesses with up to £41 million annual turnover and seeking up to £1 million worth of loans, subject to eligibility.