Contractors thriving thanks to new Government-backed finance scheme
New figures have shown that contractors are finding they are more able secure bank loans, thanks to new government-backed scheme Enterprise Finance Guarantee.
The recent findings have shown that the demand-led scheme has reached its highest level since 2010.
The Enterprise Finance Guarantee (EFG) allows banks to lend to smaller businesses and contractors who would otherwise not receive credit, by providing the banks with a government guarantee for 75% of the loan value.
Since May 2010, over 13,400 smaller organisations have been offered EFG loans with a total value of nearly £1.4 billion; it was also revealed that the value of EFG loans drawn by businesses this quarter was £87 million, the highest in two years.
Business Secretary Vince Cable said, “Ensuring small businesses have access to the finance they need in order to grow and thrive remains a crucial issue. The EFG scheme is making a vital contribution and businesses needing finance should take heart that the banks seem to have upped their game.”
Matt Hancock, Enterprise and Skills Minister also said, “As the economy recovers, more and more businesses are looking to invest but they can only do so if they can get the loans they need. Today’s figures show EFG supported lending at its highest level since 2010 and this is a reflection of how we have worked with the banks to encourage EFG lending.”
“We have a record number of businesses in the UK and we are determined to do everything we can to make sure our small and medium-sized businesses are able to succeed both at home and abroad.”
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