About
SWIG Finance operates across the South West of England. It provides loans and business support to South West businesses that are either starting up or need finance to grow. Its parent company, South West Investment Group Ltd, is a not-for-profit distributing company established in 1989 to raise and provide gap finance for local businesses for the purposes of economic development.
This case study demonstrates how CITR and EFG can be used together to leverage commercial investment.
Using CITR with EFG
The Enterprise Finance Guarantee Scheme (EFG) is a guarantee programme that incentivises investment into small and micro businesses that are viable but would otherwise likely find it difficult to access finance due to lack of security. It provides the lender with a government-backed 75% guarantee against the outstanding facility balance.
In 2017, HM Treasury approved the use of EFG on loans made with CITR investment. EFG and CITR used together provide the return and risk cover to attract new investment into the CDFI sector.
Amount Raised
In July 2018, SWIG Finance launched its first loan fund using EFG and CITR, with investment from Triodos Bank. This is the first time a responsible finance provider has used the two tools together to secure commercial investment.
The loan fund is worth £1.5 million and is expected to support 30 SMEs in the South West that struggle to raise finance from traditional lenders. It is targeted at disadvantaged areas and communities in the region.
More information about this innovative new fund can be found here.