DEPARTMENT FOR
BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2009/78)
issued by COI News Distribution Service. 23 March 2009
Business Secretary
Lord Mandelson today welcomed the success of the Government'
Enterprise Finance Guarantee with more than 1,300 eligible loans
worth almost £145 million being processed through the scheme.
Lord Mandelson added that as awareness grew the value of eligible
loans had increased ten-fold, from less than £3 million in week
one to around £30 million a week recently. The EFG delivery update
was discussed at the latest meeting of the Small Business Finance Forum.
Lord Mandelson said:
"These figures are good news, showing the Enterprise Finance
Guarantee is providing real help to businesses. The scheme has
taken off since its launch in January with registered lenders now
seeing a ten-fold increase in loan demand.
"However, we must continue to work with all 26 lenders
signed up to the scheme to ensure frontline staff are offering it
where appropriate to small companies across the country."
Lord Mandelson also unveiled the key findings of the
Department's first "mystery shopper" exercise which
tested lenders on staff awareness, understanding and promotion of EFG.
The results revealed that three-quarters of business advisers had
a detailed awareness and understanding of the EFG's features
and its role.
The top four lenders agreed to use the results to increase
awareness amongst frontline staff.
Notes to editors
1. The Enterprise Finance Guarantee (EFG) is a £1bn loan
guarantee scheme delivered through banks and other lenders that
will enable an additional £1.3bn of lending to business up to the
end of March 2010.
2. The EFG scheme provides a 75% government guarantee on
individual loans of up to £1m to viable businesses with an annual
turnover of up to £25m.
3. The guarantee can be used to support new loans, refinance
existing loans or to convert part or all of an existing overdraft
into a loan to release capacity to meet working capital requirements.
4. The scheme was launched on the 14 January 2009. There are 26
lenders registered to offer it: Airdrie Savings Bank, Alliance and
Leicester, Commercial Bank, Bank of Baroda, Bank of Ireland (NI
only), Bank of Scotland, Barclays, Business Enterprise Fund,
Business Finance Solutions, Clydesdale Bank, The Co-operative
Bank, DSL Business Finance, GLE oneLondon, HSBC, Lloyds Group, NEL
Fund Managers, Northern Bank (NI only), The Royal Bank of
Scotland/Natwest, State Securities, South West Investment Group,
Triodos Bank, UK Steel Enterprises, Ulster Bank (NI Only), Venture
Finance, Whiteaway Laidlaw Bank, Yorkshire Bank.
5. The Mystery Shopper exercise consisted of 207 interviews by
telephone and face-to-face of lenders business advisors and
reception staff, between 2 - 13 March. For the interviews
different business scenarios were established ranging from
enquiries based on proposals for modest start-up finance to
existing firms seeking larger amounts of capital.
6. For more information and to find out about the support
available go to http://www.businesslink.gov.uk/realhelp
or call 0845 600 9006.
Department for Business, Enterprise & Regulatory
Reform
7th Floor, 1 Victoria Street, London SW1H 0ET
Public enquiries +44 (0)20 7215 5000
Textphone +44 (0)20 7215
6740 (for those with hearing impairment)
http://www.berr.gov.uk