New Schemes to Help Businesses Announced

The Government has launched a package of financial measures that will help enable banks to continue or resume lending to viable businesses with temporary cashflow difficulties.

 

Enterprise Finance Guarantee Scheme is open to businesses with an annual turnover of up to £25million who are currently not easily able to access the finance they need. This will enable businesses to secure loans of between £1,000 and £1million.

 

Working Capital Guarantee Scheme: The Government is also making available to banks guarantees of up to £10 billion, which will support bank lending of up to £20 billion. The purpose of this facility is to release capital which banks can redeploy in order to increase all types of lending above their current plans to businesses with a turnover of less than £500million.

 

Capital for Enterprise Fund: Supported by £50million of government funding this scheme will allow companies to fund business development by selling debt in exchange for an equity stake in their business. The fund will provide equity and quasi-equity of between £250,000 and £2million for companies of up to £50million turnover who have viable business models and growth potential in need of long term capital.

 

For the Working Capital Scheme and the Enterprise Finance Guarantee Scheme, businesses need to contact their banks. Any business wishing to take advantage of the Capital for Enterprise Fund should call the registration helpline on 0845 459 9780.