Enterprise Finance Guarantee
What is the Enterprise Finance Guarantee?
The credit crunch has seen a significant impact on the availability of credit. In response to this the Government launched the Enterprise Finance Guarantee (EFG) scheme. The Scheme is delivered by participating Lenders focused upon improving the accessibility to working capital and investment funds for Small and Medium sized Enterprises in the UK.
Subject to all eligibility criteria being met the EFG is available for Small and Medium sized Enterprises looking for additional lending but lacking the security required by their Lender.
Capitalise Business Support is delighted to be the only Community Development Finance Institution (CDFI) in the South East and one of only a handful of lending institutions outside of the high street banks able to offer the scheme.
Key Features and Benefits
- A government guarantee which partially secures business loans to any viable business with a sound borrowing proposal *
- The loan can be repaid over any period between 3 months and 10 years
- Variable interest rates
- A quarterly premium is payable to the Government’s Department for Business Innovation and Skills (BIS) at 2% per annum
* Whilst a start up business is eligible under BIS terms, it is our policy to focus only on supporting businesses that can demonstrate a minimum 12 months trading history. We do however reserve the right to consider applications from start up businesses in very exceptional cases.
How much can I borrow?
- Up to £30,000**
** Exceptionally we will consider applications outside of this parameter.
What business support shall I receive?
Capitalise Business Support will help you in the following ways:
- Give you time and advice on how to refine and develop your plans
- Guide you through the loan application process
- Provide you with a business mentor for the lifetime of the loan with up to 2 FREE business reviews per annum.
Eligibility
To be eligible, your application will need to;
- be deemed a viable borrowing proposition by us, and;
- have no or insufficient security available to meet our normal security requirements, and;
- meet the basic EFG eligibility criteria see below
You will be eligible to apply for an EFG facility if:
- we were prepared to offer you a non-scheme facility if full security was available
- we believe that you have a viable business plan and can repay the EFG loan
- we believe a term loan is the most appropriate type of facility for you
- you are engaged in an Eligible Business Activity
- the EFG facility will be used for an Eligible Purpose, for example:
- Expanding an existing business
- Purchase of equipment
- Working capital - your Business Turnover does not exceed the Turnover Limit, currently £25m
- your business trades in the UK
- your business is based in Sussex, Kent or Surrey.***
- you do not borrow more than the maximum amount allowed by the government (£1million when taking into account any previous EFG lending to you)
- provision of the EFG facility does not break any rules and regulations in relation to any previous State Aid you have received.
*** Whilst we primarily lend to businesses in Sussex, Kent & Surrey, we will consider applicants from other South East based businesses on a case by case basis.
| Additional charges may be applicable if security is required. |
If a loan is secured by your property please be aware that your home could be at risk if you fail to meet the repayments.
Call us now on 0845 6018326
