Small firms loan guarantee scheme
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The Small Company Loan Guarantee Scheme
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The Small Firms Loan Guarantee Scheme guarantees loans from banks and other financial institutions for small firms that cannot provide their own security...
To be eligible for the scheme your company should:
- Have a viable business proposal
- Have tried and failed to get a conventional loan because of a lack of security
- Be a UK company
- Have a turnover of no more than £1.5mn (£5mn if you are a manufacturer)
- Not be one of the business types which are excluded from the scheme
- Your lender must be one of those involved in the scheme
Loans are available for sums of between £5,000 and £100,000 (£250,000 if your business has been trading for more than 2 years), for periods of between 2 and 10 years.
The Government’s Small Business Service (SBS) guarantees 70% of the loan (85% if your business has been trading for more than 2 years).
However, in return you will have to pay the SBS a premium of 1.5% per year on the outstanding amount of the loan. The premium is reduced to 0.5% if the loan is taken out at a fixed rate of interest.
To find out whether your company is eligible and to apply for the scheme you will need to contact one of the lenders involved with scheme.
These are:
- Allied Irish Banks/First Trust Bank
- Bank of Ireland
- Bank of Scotland
- Barclays Bank
- Clydesdale Bank
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- Co-operative Bank
- Doncaster Business Advice Centre
- Lloyds TSB group
- London Enterprise Agency
- HSBC Bank
- Northern Bank
- National Westminster Bank
- Northern Venture Managers Ltd
- Royal Bank of Scotland
- UK Steel Enterprise
- Ulster Bank
- Venture Finance plc
- Yorkshire Bank, and
- Yorkshire Enterprises Ltd
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For a free initial consultation on Small firms loan guarantee scheme and how your business can benefit from this facility contact now
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