Around 40% of the loans offered through the government’s Enterprise Finance Guarantee (EFG) scheme are being issued by Barclays, the bank has claimed.
Barclays said it was currently issuing around £2m of EFG loans per day through the scheme which is available to businesses with an annual turnover of no more than £25m, seeking loans of between £1,000 and £1m. The loan still comes from the bank, but the government underwrites 75% of it.
Barclays claim that it is issuing 40% of all EFG loans comes after Buxton-based manufacturer Primopost secured a £363,000 loan through the scheme.
According to government figures, loans worth £186m have now been awarded to 2,059 firms through the EFG, while more than £344m of eligible applications have either been granted, processed or assessed.
The EFG scheme was recently extended to allow social enterprises to apply for finance under it. The government will now guarantee loans from accredited lenders to Community Development Finance Institutions (CDFIs) totalling £20m.
© Crimson Business Ltd. 2009
