If a bank (that is involved with the scheme) thinks your idea is
viable but you don't have sufficient security for them to finance it,
they can forward your proposal to the SBS for consideration under
this scheme. If it is approved, 75% of the loan will be guaranteed
by the SBS, with the other 25% being unsecured against whatever you
have to offer.

Most small businesses qualify, including retailing and catering,
hairdressing and beauty salons, estate agents, motor-vehicle repair
and servicing and travel agents. The maximum turnover level for non-
manufacturing businesses is £3 million. This goes up to £5 million
if you're a manufacturer.

Loans are available for sums from £5,000 to £100,000 for start-ups
and up to £250,000 if you've been trading for two years or more. Loans
run from a two-year to a 10-year period. Note that borrowers pay a
premium to use this service, and it is set at 2% per year on the
outstanding balance of the loan.

To find out more, phone the Small Firms Loan Guarantee Unit (0114
259 7308).To make an application under the scheme, go direct to
one of the lenders involved with the scheme. These include Bank of
Ireland (Northern Ireland Only), Bank of Scotland, Barclays Bank,
Clydesdale Bank, Co-operative Bank, Doncaster Business Advice Centre,
emerging Business Trust limited, First Trust Bank/Allied Irish Banks,
HSBC Bank, Lloyds TSB, National Westminster Bank, Northern Bank,
Northern Enterprise Limited, Northern Venture managers Ltd,
one London Ltd, Royal Bank of Scotland, State Securities Plc,
UK Steel Enterprise, Ulster Bank, Venture Finance Plc, Yorkshire
Bank, Yorkshire Enterprise Ltd.

Note that this list is subject to change, although big lenders should
remain involved on a long-term basis.

David
Small Business Resource