Government-backed Loan

How the Enterprise Finance Guarantee Scheme works
Under this scheme, the UK Department for Business Innovation & Skills (BIS), will guarantee 75% of your loan – which means you don't need a large amount of security to back your borrowing.

What's more, you will enjoy many of the benefits available with our other loans.

Enterprise Finance Guarantee Scheme benefits

• Variable or fixed interest rates - giving you the choice you need
• £1,000,000 maximum loan - minimum £1,000 (£26,000 minimum for fixed rate loans)
• 3 month minimum term - and a maximum term of 10 years
• Drawdown options to suit your business - you can receive your funds in stages, to suit the pattern of your business
• Payment holidays - you can request a capital repayment holiday of up to three years. During the holiday period, interest will continue to accrue and be applied quarterly. You will be required to lodge funds to meet interest applications during the agreed capital holiday period

If you qualify for the BIS guarantee and take a loan under the Enterprise Finance Guarantee scheme, you will need to pay a premium to BIS. The premium is based on 2% per annum on the reducing loan balance and is due quarterly. It will be reduced to 1.5% during 2009 for premiums that are paid on time.

The Government-backed Enterprise Finance Guarantee Scheme is designed specifically for businesses that don't qualify for conventional bank financing and aims to help the expansion of new and existing businesses.

Some sectors are excluded from this scheme, and restrictions may apply to others.

• Visit the Enterprise Finance Guarantee pages on the Business Link website

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