Subsidised and Guaranteed Loans

1. Enterprise Finance Guarantee

The Government's Enterprise Finance Guarantee provides a government guarantee against default on loans from banks and other financial institutions.

The scheme is run by the the Department for Business, Innovation & Skills (BIS). It helps businesses that cannot access normal commercial lending to borrow, by providing a government guarantee for 75 per cent of the value of a loan.

1.1 The Enterprise Finance Guarantee scheme can be used to guarantee 75 per cent of loans for amounts between £1,000 and £1 million, repayable over ten years.

1.2 Your annual turnover must be no more than £25 million.

To qualify, businesses must demonstrate to their lender that they have a viable business plan.

1.3 You pay BIS a premium of 2 per cent a year on the outstanding balance, payable quarterly.

1.4 The Enterprise Finance Guarantee scheme is operated by BIS in partnership with a number of private sector financial institutions.

• When you discuss your borrowing requirements with one of these approved lenders, they will advise you whether your business is eligible.