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richard@finance4business.biz
Telephone:  07872033804
Under the Enterprise Finance Guarantee, the Government will guarantee lending to viable businesses to ensure that they can get the working capital and investment that they need.
It will enable them to secure loans of between £1,000 and £1 million through the Government guarantee and is available up to 31 March 2010.

The guarantee (75%) 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.

Delivery of the Enterprise Finance Guarantee, including the decision on whether or not it is appropriate to use it in connection with any specific lending transaction, is fully delegated to the participating lenders. There is no automatic entitlement to receive a guaranteed loan and nor is there any pre-qualification process for it.

What has happened to SFLG?
The Small Firms Loan Guarantee is suspended. The type of lending previously provided under SFLG – to businesses that lack collateral and/or track record – will still be available under the new scheme. Government will be bringing forward proposals for a scheme post March 2010 later this year.

How is EFG different to SFLG?
In short it offers more help to more businesses – EFG provides loans up to £1 million compared to an upper limit of £250,000 for SFLG and supports businesses with a turnover of up to £25 million compared to £5.6 million under SFLG. Additionally ECF loans can be used to convert an overdraft into a loan. EFG is available to viable businesses that in normal circumstances would be able to secure lending from banks but who cannot secure bank lending in the current times.

Costs
In addition to regular capital and interest payments to the lender, and any arrangement fee which they may charge, a premium is payable to BERR.  The premium is equivalent to two per cent per annum on the outstanding balance of the loan, assessed and collected quarterly in advance throughout the life of the loan.  

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ENTERPRISE FINANCE GUARANTEE
Finance 4 Business Limited co no 06278376
Director Richard Watts CCL number 605125


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