The Enterprise Finance Guarantee Loan (EFG) is a scheme set-up to assist businesses who might not have been successful with a normal commercial loan application. It is a government backed initiative where they guarantee up to 75% of the loan with the lender against the outstanding facility.
Any lender will need to be fully satisfied with the business application and feel comfortable that repayment of the loan will be maintained. Applications will be carefully considered and a business will need to submit a clear proposal which is workable, demonstrates growth and potential to succeed. It is the lender that makes the sole decision and who will confirm the eligibility, the government will purely back the scheme.
Some of the key eligibility factors are:
- Businesses must be based in the UK
- Turnover cannot exceed £41million
- Finance is available between £25,000 to £1,200,000
If you are interested to find out more about an EFG Loan, you might also be interested to learn about the Recovery Loan Scheme (RLS). This government backed initiative has been developed to support businesses with a boost in cashflow with funds from £25,000 up to £10,000,000. The RLS is the replacement to the CBILS and BBLS initiatives previously set-up by the Government to support businesses during COVID-19.
If you have any question regarding an EFG Loan or RLS please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.