Light at the end of the Tunnel?

Recent times have been depressing and very worrying for business owners throughout Scotland in this challenging economic climate. There has been massive media coverage surrounding the banks financial instability which is making it even more difficult for businesses to access much needed funding.

However, it is very much worth noting that businesses can still take advantage of the Enterprise Finance Guarantee Scheme (EFG) which aims to assist businesses who are facing difficulties in securing finance. Bank loans are available up to £1 million.

Under the EFG scheme the government will guarantee 75% of any loans made with the banks covering the remaining 25% in respect of any bad debts.

Enterprise Finance Guarantee Scheme – details

• The EFG will apply to loans, and can be utilised to convert existing overdrafts into loans to enable businesses to free up their current overdraft facilities for working capital requirements.
  
  
• The EFG is available to businesses with annual turnover of up to £25M. Firms can apply for loans of up to £1 million and loans can be repaid over 10 years.
  
  
• The EFG is available through Barclays, Clydesdale Bank, Lloyds TSB/Bank of Scotland and RBoS/Nat West.
  
  
• Please note that the EFG scheme will be extended to 31 March 2011.