Banks slow to provide loans under new scheme
If you have been suffering from cash flow problems during this credit crunch/recession then you may have tried to gain a loan from your bank under the Enterprise Finance Guarantee (EFG) scheme, which started in January.
Don’t worry if the bank manager rejected your request – he needs to adjust to the idea of providing loans to keep businesses ticking over, under the EFG scheme.
Where bank managers would normally be asked to provide a loan for a small business to expand, during an economic downturn a business’ first priority is to survive!
Under the scheme, businesses with revenues of less than £25m can take out a loan of up to £1m for a maximum of ten years, of which the Government is guaranteeing 75% of the value.
A mere 8% of 4000 small businesses have been able, so far, to utilise the scheme.
A source from the Department for Business, Enterprise and regulatory Reform has reportedly said they are monitoring usage of the scheme at banks to make sure it is running smoothly.
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Tags: small business
February 27th, 2009 at 3:54 pm
Well those 47 that have applied are better men/women than me. I have never seen this scheme advertised or how to apply and only heard it announced on the media news by the Premier. The small businessman has been forgotten and neglected again. First home buyers have been shown a hell of a lot of favouritism.
Stuart
Home Based Business