Enterprise Finance Guarantee

Since its launch in 2009, the British Business Bank’s Enterprise Finance Guarantee (EFG) has supported the provision of over £3.3bn of finance to more than 35,000* smaller businesses in the UK.

Most banks require security (property, assets) before they'll loan you any money.  But if you have no assets (or very limited assets) then you may be able to access the Enterprise Finance Guarantee (EFG), under which banks can offer you a loan (from £1k to £1.2m) without needing security.  

If the EFG lender can offer finance on normal commercial terms without the need to make use of EFG, they will do so.  Where the small business has a sound borrowing proposal but no, or inadequate security, the lender will consider the small business for support via EFG.

In order to be eligible your company must:

• Be UK based, with turnover of no more than £41 million per annum

• Operate within an eligible industrial sector (a small number of industrial sectors are not eligible for support)

• Have a sound borrowing proposal and robust business plan, but inadequate security to meet a lender’s normal requirements

• Be able to confirm that they have not received other public support of state aid beyond euro 200,000 over the previous three years

A list of lenders offering the EFG scheme can be found on the website, among which are many of the major high street banks, including:

• HSBC

• NatWest

• Barclays

• TSB

• LLoyds

• Bank of Scotland

Important Note:

If you already have assets (and a home which you own or partially own would count as an asset) your access to this kind of finance will be limited.