News and Views
Can I raise loan finance under the Small Firms Loan Guarantee Scheme?

The small firms loan guarantee scheme (SFLGS) is a government backed scheme (administered by the DTI) with the object of ensuring that small businesses who wish to obtain finance from banks and building societies but have been refused due to a lack of security are able to. The main sticking point is that the bank must have approved the loan under normal commercial considerations but for a lack of security.

The definition of a small business is one with less than 200 employees and, currently, turnover of less than £1.5 million (£3m. for manufacturers). Note that some businesses, notably cafes and restaurants, are not eligible for the scheme.

The loan can be from £5,000 to £250,000. The DTI will guarantee from 70-85% of the loan dependant on how long the business has been trading. There is a premium for this guarantee of 1.5% of the outstanding balance per annum.

To discuss your eligibility for the SFLGS please call Nic Rawlings.