Changes to the government's flagship small business loan scheme will shift its focus to start-up and younger firms.
Currently, only businesses trading for over five years are eligible to apply under the Small Firms Loan Guarantee (SFLG) initiative, but new rules will limit availability to firms under five years old in a push to boost the growth of start-ups and young businesses.
The changes, introduced on 1 December, will also expand lending limits so that eligible firms may borrow up to £250,000.
Additionally, the government will raise the bar of eligibility to businesses with a turnover of up to £5.6 million.
"These changes will encourage use of the SFLG by as wide a range of eligible small and medium-sized enterprises as possible and through as diverse a range of lenders," said competitiveness minister Barry Gardiner.
"The SFLG is a vital element for helping businesses achieve ongoing success, making a real difference to those that find it difficult to obtain the necessary finance to grow."
The rules will also open up borrowers' access to a new range of lenders and banks that can demonstrate a clear focus on high-growth firms.
They will also stipulate that lending decisions will be based on the quality of the business case instead of the current focus on the borrowing histories of those involved with the business.
