Bank EFG scheme continues to falter

Monies lent against the EFG, the Enterprise Finance Guarantee Scheme, fell to a record low in Q4 2018 of £55.6m and 78% below its peak in Q2 2009. The EFG scheme is used to facilitate lending to viable SME businesses with turnover less than £41m that would normally be turned down for a loan, but purely down to a lack of security, and not viability. Loans can be anywhere between £1k to £1.2m and the guarantee is provided by the government. The bulk of the participant funders in the scheme are the high street banks and thus the fall is disappointing, especially where this type of scheme can be very useful where a sound business just does not have the available security, and this is a way for the banks to support them, whilst having a UK government guarantee to protect itself.

Contact Us

Please enter your name.
Please enter a valid email address.
Please enter a valid phone number.
Please type your message.