Enterprise Finance Guarantee
Have a workable business proposal but lack security or need to free up overdraft facilities? The Enterprise Finance Guarantee (EFG) enables small businesses with a workable business proposal, but lacking sufficient security, to borrow money from approved lenders.
Features and benefits
- Borrow from £25,001 to £600,000 over 1 to 10 years or, from £600,001 to £1.2 million over 1 to 5 years.
- Bank of England Bank Rate linked or fixed rate1 interest terms available, dependent on circumstances.
- Flexible draw down arrangements may be available.
- Capital repayment holidays may be available.
- To apply for Enterprise Finance Guarantee, your business's turnover must not exceed £41 million per annum. You must also be able to confirm that your business has not received de minimis State aid beyond €200,000 (or equivalent) over the previous three years.
The British Business Bank's Enterprise Finance Guarantee (EFG) scheme facilitates lending to smaller businesses that are viable but unable to obtain finance from their lender due to have insufficient security to meet the lender's normal requirements. The scheme is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and Industrial Strategy (BEIS).
Tell us about your plans and needs so we can agree the interest rate. Then we can let you know whether we need any security. In this situation, EFG provides the lender with a government-backed 75% guarantee against the outstanding facility balance, potentially enabling a 'no' credit decision to become a 'yes'.
The Enterprise Finance Guarantee scheme is specifically designed for small businesses. We lend to businesses of all ages, so you wouldn’t be refused just because your business is young or you can’t offer normal security. In this situation, EFG provides the lender with a government-backed 75% guarantee against the outstanding facility balance, potentially enabling a 'no' credit decision to become a 'yes'.
For more information on the Enterprise Finance Guarantee please visit the British Business Bank website.
One of our business management team will be happy to speak with you about your application.
However, before you get in touch, please make sure you’ve prepared answers to the following:
- How much would you like to borrow?
- How will you use the loan?
- What length of loan term do you expect?
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.
Overdrafts are repayable on demand.
All lending is subject to a satisfactory credit assessment 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 now and in the future to avoid the possibility of legal action.
1 There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate.
Important legal information
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278. Telephone: 020 7626 1500
Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.