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Enterprise Finance Guarantee

Enterprise Finance Guarantee scheme

If a lack of security is preventing you from borrowing to start, grow, develop or diversify your business, an Enterprise Finance Guarantee loan could provide the solution.

What is an Enterprise Finance Guarantee (EFG) loan?

If you don’t have the necessary security to obtain a conventional loan facility, you can apply to use the Enterprise Finance Guarantee scheme through Enterprise Answers.

The scheme managed by the British Business Bank (BBB) on behalf of the Government, can be used to support term lending. Under the scheme, a guarantee for 75% of your loan capital is provided by the Government to the lender.

Please note – you will be responsible for repayment of 100% of the EFG facility, not just the 25% outside the coverage of the government’s guarantee.Where defaults occur, we follow our standard recovery procedures, including the realisation of security, before we make a claim against the government’s guarantee for any shortfall.

What does the Enterprise Finance Guarantee scheme offer?

Interest rates are fixed for the duration of your loan

Borrow from £10,000 to £200,000

Loan terms can range from 3 months to 10 years

Capital repayment holiday requests can be considered during the term of your loan should you experience cash flow difficulties. If you decide to take a capital repayment holiday, you should be aware that interest will continue to accrue during the duration of the payment holiday and your payments may increase after you resume payments.

More information about the Enterprise Finance Guarantee scheme

If you take a loan under the scheme, you need to pay a 2% guarantee fee on the outstanding balance to Department for Business, Energy and Industrial Strategy . Guarantee fees are collected in advance by direct debit on a quarterly basis.

Some sectors are excluded from this scheme, and restrictions may apply to others. Please speak to our Chief Executive or Business Lending Manager for further details.

The Enterprise Finance Guarantee scheme is managed by the British Business Bank on behalf of and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy.  Enterprise Answers is an accredited lender under the Enterprise Finance Guarantee scheme.