The EFG gives vital funding to small and medium-sized enterprises (SMEs) that lack the collateral or credit history to secure a normal bank loan.
The four new accredited lenders 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.”
As announced in November, EFG is now available to businesses with up to £41m annual turnover and seeking up to £1m worth of loans, subject to eligibility. Further information and advice is available to businesses online via www.businesslink.gov.uk.
This year the Government is running the Business in You campaign to encourage more people to start or grow their business throughout 2012 using a range of existing support services, including the EFG. More information is available at businessinyou.bis.gov.uk.
Notes to editors:
- The EFG facilitates additional bank lending to viable SMEs. The Government provides the lender with a guarantee for which the borrower pays a premium. Accredited lenders administer EFG and make all decisions on lending.
- BIS funding for the EFG scheme is committed until 2014-15 and will provide up to £2 billion in additional lending over four years, subject to demand.
- Lenders wanting to apply in the new accreditation round should contact Capital for Enterprise Limited, 1 Broadfield Close, Broadfield Business Park, Sheffield, South Yorkshire, S8 0XN or email@example.com.
- BIS's online newsroom contains the latest press notices, speeches, as well as video and images for download. It also features an up to date list of BIS press office contacts. See http://www.bis.gov.uk/newsroom for more information.