Barclays extends business loan scheme

Tuesday, 26 January 2010 12:00

Barclays is to make £88 million available in loans to small and medium businesses in a bid to boost their prospects following the recession.

The cash is being offered as an extension of the Enterprise Finance Guarantee (EFG) which was introduced to provide loans for viable businesses who could not offer the security required to be accepted for normal commercial lending.

In the last year, so far, Barclays has made over £150 million available in EFG loans.

The bank has worked closely with the government to run the scheme, which provides the loans to UK companies providing a turnover of up to £25,000. The government provides a proportion of the lending if the customer is unable to repay the debt.

Lord Davies, trade, investment and small business Minister, said the EFG had helped thousands of viable businesses access the finance they needed to withstand the recession and prepare for recovery.

He added: "Following its recent extension, it will continue to play a vital role in encouraging enterprise and investment and driving productivity and growth throughout the UK economy."

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