Six months after being introduced, well over half a billion pounds worth of eligible EFG applications have been granted or are in the process of being assessed by banks.
Business Minister Shriti Vadera said: “I welcome this report and the recognition that EFG is helping viable small businesses through this difficult economic time. I also welcome the committee’s interest in testing experience of businesses with their banks. We will also continue to monitor uptake and performance of the banks to ensure EFG plays its part in getting access to finance for small and medium businesses. I encourage any small and medium business experiencing difficulty in obtaining a loan or overdraft to talk to banks about the possibility of using the EFG.”
A total of 4,054 businesses have been offered an EFG loan, with an overall value of £400 million. In January this year the Government expanded its help for small businesses to ensure more firms are eligible to access the finance they need during the recession. This expansion has helped see lending to small businesses underwritten by the Government in the second quarter of this year reach £197 million, more than four times higher than the £43.6 million for the same period last year.
