Facilitating lending to the UK’s smaller businesses
Since its launch in 2009, the British Business Bank’s Enterprise Finance Guarantee (EFG) has supported the provision of £2.7bn of finance to more than 26,000 smaller businesses in the UK (as at October 2016).
EFG facilitates lending to smaller businesses that are viable but unable to obtain finance from their lender due to having insufficient security to meet the lender’s normal security requirements. In this situation, EFG provides the lender with a government-backed 75% guarantee against the outstanding facility balance, potentially enabling a ‘no’ credit decision from a lender to become a ‘yes’. EFG is managed by British Business Financial Services Limited on behalf of its sponsoring department, Department for Business, Energy and Industrial Strategy (BEIS).
Working with business advisers and practitioners
The British Business Bank is partnering with stakeholders such as Responsible Finance to raise awareness of EFG, with the aim of helping smaller businesses that may have inadequate security to meet a lender’s normal requirements but have a robust business plan and a sound borrowing proposal. Raising awareness through partner stakeholders will help to ensure viable businesses know to enquire if they are eligible for an EFG-backed facility and how to apply through one of the British Business Bank’s 40+ accredited EFG lenders.
For more information on EFG eligibility, participating lenders and how to apply, please go to the British Business Bank website.