Small Firms Loan Guarantee Review
Small Firms Loan Guarantee
The UK Governments SFLG guarantees loans from the banks and other financial institutions for small firms that have viable business proposals but who have tried and failed to get a conventional loan because of lack of security.The Government Loans are available for periods of between two and ten years on sums from £5,000 to £100,000 (£250,000 if your business has been trading for more than two years). SFLG guarantees 75% of the loan. In return for the guarantee, the borrower pays DTI a premium of 2% a year on the outstanding amount of the loan. The commercial aspects of the loan are matters between the borrower and the lender.
To be eligible for the small firms loan guarantee scheme, you must be a UK company with an annual turnover of no more than £3m (£5m if you are a manufacturer). Many business activities are eligible but there are a number of exclusions. Small firms guaranteed loans are available for most business purposes although there are some restrictions.
You can apply for a business loan protected by the small firms loan guarantee by contacting one on the approved lenders listed below:
Bank of Ireland (NI only)
Bank of Scotland
Barclays Bank
Clydesdale Bank
Co-operative Bank
Doncaster Business Advice Centre
Emerging Business Trust Ltd
First Trust Bank/Allied Irish Banks
HSBC Bank
Lloyds TSB Group plc
National Westminster Bank
Northern Bank Ltd
Northern Enterprise
Northern Investors Company Ltd
OneLondon Ltd
Royal Bank of Scotland
State Securities plc
Triodos Bank
UK Steel Enterprise
Ulster Bank Ltd
Venture Finance plc
Yorkshire Bank
Yorkshire Enterprise Ltd