NOTE:
Changes to the Small Firms Loan Guarantee
scheme (SFLG) came into effect from
1 April 2003 and cover:
-
A single guarantee rate of 75% for
all new loans;
-
Sector exclusions removed for retailing,
catering, coal, hairdressing and
beauty parlours, house and estate
agents, libraries, museums and cultural
activities, motor vehicle repair
and servicing, steel and travel
agents;
-
The maximum turnover level for non-manufacturing
businesses increased from £1.5m
to 3m;
-
The premium paid by the borrower
set at 2% per year on the outstanding
balance for all new loans.
Main Terms and Conditions
The Small Business Service (SBS) SFLG
guarantees loans from the banks and
other financial institutions for small
firms that have viable business proposals
but who have tried and failed to get
a conventional loan because of lack
of security.
Loans are available for periods of between
two and ten years on sums from £5,000
to £100, 000 (£250,000 if your business
has been trading for more than two years).
SBS guarantees 75% of the loan. In return
for the guarantee, the borrower pays
SBS a premium of 2% a year on the outstanding
amount of the loan. The commercial aspects
of the loan are matters between the
borrower and the lender.
To be eligible, you must be a UK company
with an annual turnover of no more than
£3m (£5m if you are a manufacturer).
Many business activities are eligible
but there are a number of exclusions.
Loans are available for most business
purposes although there are some restrictions.
If you would like to make an application,
please contact one of the lenders who
are involved in the scheme. They are:
-
Bank of Ireland (NI only)
-
Bank of Scotland
-
Barclays Bank
-
Clydesdale Bank
-
Co-operative Bank
-
Doncaster Business Advice Centre
-
Emerging Business Trust Ltd
-
First Trust Bank/Allied Irish Banks
-
HSBC Bank
-
Lloyds TSB Group Plc
-
National Westminster Bank
-
Northern Bank Ltd
-
Northern Enterprise
-
Northern Investors Company Ltd
-
oneLondon Ltd
-
Royal Bank of Scotland
-
State Securities plc
-
Triodos Bank
-
UK Steel Enterprise
-
Ulster Bank Ltd
-
Venture Finance plc
-
Yorkshire Bank
-
Yorkshire Enterprise Ltd
Further information about the scheme
is available in the SFLG booklet below.
If the booklet does not answer your
queries, contact one of the lenders
or the SBS Small Firms Loan Guarantee
Unit: Tel:
0845 001 0032/0033
e-mail: sflgs@sbs.gsi.gov.uk
The SBS will respond to any enquiry
within 15 working days.
If
you need help in preparing your case
please call our help line 08451 30 40
92/3 or Contact
us by email
