Small Firms Loan Guarantee
November 2005
The Small Firms Loan Guarantee (SFLG) was introduced in 1981. It is designed to help SMEs with viable business propositions but without the necessary security to access debt finance. Loans are currently available for periods of between two and ten years on sums from £5,000 to £100,000 (or £250,000 if the business has been trading for more than two years). The SFLG covers 75% of the lender’s exposure with the borrower paying a 2% premium to the government.
Following the Graham Review, major changes to the SFLG will be introduced in December 2005. These will include:
- the introduction of a single lending limit of £250,000
- raising the turnover limit for all eligible SMEs to £5.6m (currently £5m for manufacturing and £3m for other businesses)
- limiting the availability of SFLG to SMEs under five years old.
Further detail on the changes can be found at: SBS news release
Top
|
|
 |
