Small Firms Loan Guarantee
What are the main types of finance available and what do investors and lenders look for before they advance money?
Have a workable business proposal but lack security?
The Small Firms Loan Guarantee (SFLG) enables small businesses with a workable business proposal, but lacking security, to borrow money from approved lenders.
Borrow up to £250,000 for your business
Spread repayments over 2 to 10 years
Fixed rates of interest and capital repayment holidays
available
To discuss loan options for your business, call into your local branch or call 0845 072 5555 to speak to one of our business managers.
Small Firms Loan Guarantee features & benefits
You may need an injection of capital to help get your business off the ground, or cash to help grow your business once it's established. For instance, you may want to buy or update equipment, move to bigger premises or expand your operation into new markets. In cases like this conventional finance sources, such as a business loan or overdraft, are not always available because your business may be too young to qualify, or you can’t offer normal security.
If your business is under 5 years old and your turnover is not more than £5.6million, you may be eligible for funding under Small Firms Loan Guarantee. This is a tool that allows businesses to raise finance, through Lloyds TSB, with 75% of the loan’s value guaranteed by the Department for Business, Enterprise and Regulatory Reform (DBERR).
- Borrow flexible lump sums: from £5,000 to £250,000.
- Spread repayments over 2 to 10 years.
- Variable or fixed rate interest terms are available depending on your circumstances.
- An early repayment charge is payable if you choose to repay part or all of a fixed rate loan early.
- Apply for an initial capital repayment holiday up to a maximum of two years.
- Flexible draw down arrangements (where total loan is over £25,000).
Tell us about your plans and needs, and we will then agree the interest rate with you and let you know whether we need any security. As well as the interest, you will pay an arrangement fee, plus a Government premium of 2 percent a year on the outstanding balance of your loan.
Any property given as security, which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it. All loans are subject to status and we will need your permission to carry out a credit check on you and your business. You should not apply for an amount that you cannot comfortably afford to repay.
Alternative finance solutions
You should consider our other finance solutions first, including:
Further information
For more information on the Small Firms Loan Guarantee please visit the BERR website.
How do I find out if my business is eligible?
At your local branch
Drop in to your local branch to complete an application form.
By phone
Call 0845 072 5555 to make an appointment.
