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| Title: |
Small Firms Loan Guarantee Scheme |
| URL: |
http://www.sflgfinance.co.uk/ |
| Description: |
We are an independent company of finance brokers who offer business finance advice to help new businesses get start up finance in the form of new start business loans and we give guidance on setting up the Small Firms Loan Guarantee scheme (SFLGS) |
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Total Links: 10
The Government Small Firms Loan
Guarantee Scheme explained...
This is a scheme that was originally introduced by the government in 1981. The purpose of the SFLGS (or Small Firms Scheme as it is also known), is to help businesses that do not have sufficient security to attract conventional bank lending to get the funds they need.
It was originally administered by the DTi, but is now managed by BERR (Department of Business Enterprise & Regulatory Reform). There have been several "rule changes" over the years, the most recent being as a result of the Graham Review carried out by Lord Graham in 2004.
Very simply, this is how the scheme works:
- You have a sound and viable Business Proposition
- A Funder agrees to lend but you lack sufficient security
- You meet the Scheme eligibility criteria
- The Lender then looks to the SFLGS to provide a 75% guarantee
- The decision to lend is made by the Lender — NOT the government
- Commercial Terms are agreed between you and the lender — the government does not set these
- You can borrow from £5,000–£250,000 from between 1–10 years
- Capital Repayment holidays can be negotiated
- A fee of 2% p.a. is payable to the BERR for providing the guarantee
- Funds can be in your account within a few weeks of application
