{"id":35554,"date":"2013-11-22T09:00:00","date_gmt":"2013-11-22T09:00:00","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=04d31dc01c5d02dd02365202bd6095f1"},"modified":"2013-11-22T09:00:00","modified_gmt":"2013-11-22T09:00:00","slug":"press-release-more-small-businesses-benefiting-as-lending-scheme-hits-3-year-high","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=35554","title":{"rendered":"Press release: More small businesses benefiting as lending scheme hits 3 year high"},"content":{"rendered":"
\n

Small and medium-sized enterprises (SMEs<\/abbr>) are increasingly able to secure bank loans supported by a government-backed scheme, as lending under the scheme reached its highest level since 2010.<\/p>\n

Enterprise Finance Guarantee<\/a> (EFG<\/abbr>) scheme lending figures, published today (22 November 2013), show banks offered loans worth \u00a3111 million to SMEs<\/abbr> in the third quarter of 2013, the most since 2010. As well as the banks offering more, and bigger EFG<\/abbr><\/a> loans to SMEs<\/abbr>, the value of EFG<\/abbr><\/a> loans drawn by businesses this quarter was \u00a387 million, the highest since 2011.<\/p>\n

EFG<\/abbr><\/a> is a demand-led scheme which allows banks to lend to SMEs<\/abbr> who would otherwise not receive credit, by providing the banks with a government guarantee for 75% of the loan value. Since May 2010, over 13,400 SMEs<\/abbr> have been offered EFG<\/abbr><\/a> loans with a total value of nearly \u00a31.4 billion.<\/p>\n

Business Secretary Vince Cable said:<\/p>\n

\n

Ensuring small businesses have access to the finance they need in order to grow and thrive remains a crucial issue. The EFG<\/abbr><\/a> scheme is making a vital contribution and businesses needing finance should take heart that the banks seem to have upped their game.<\/p>\n

But there are long-standing problems with the finance markets which need addressing, and that is why I have created the British Business Bank<\/a>. We need a much more competitive and diverse market, which businesses of all sizes can have confidence in and helps build a stronger economy.<\/p>\n<\/blockquote>\n

In total, EFG<\/abbr><\/a> supported lending is available through 42 finance providers, including all of the main high street banks. Today\u2019s figures show considerable progress has been made across the board since the same quarter last year, with Barclays Bank in particular consistently offering increased EFG<\/abbr><\/a> lending since 2012. In the last quarter, Barclays offered nearly twice as much in loans to businesses compared to the same period last year, despite the number of loans offered only increasing slightly.<\/p>\n

Enterprise and Skills Minister Matt Hancock said:<\/p>\n

\n

As the economy recovers, more and more businesses are looking to invest but they can only do so if they can get the loans they need. Today\u2019s figures show EFG<\/abbr><\/a> supported lending at its highest level since 2010 and this is a reflection of how we have worked with the banks to encourage EFG<\/abbr><\/a> lending.<\/p>\n

We have a record number of businesses in the UK and we are determined to do everything we can to make sure our small and medium-sized businesses are able to succeed both at home and abroad.<\/p>\n<\/blockquote>\n

Business Minister Michael Fallon wrote to the Chief Executives of the 5 main high street banks in September 2012 to challenge them to increase their EFG<\/abbr><\/a> lending after lending continued to fall significantly from the peak in 2009. This was despite the government, in partnership with the banks, making a number of changes to the scheme to make it more flexible and easier to access.<\/p>\n

The EFG<\/abbr><\/a> is 1 of the schemes that has been brought under the British Business Bank<\/a>, which is being set up by as a government-owned economic development bank. It has recently appointed Ron Emerson as Chair and confirmed the first \u00a345 million commitments from its \u00a3300 million Investment Programme.<\/p>\n

Notes to editors<\/h3>\n
    \n
  1. \n

    In quarter 3 2013 (July \u2013 September), banks offered \u00a3111 million to small and medium-sized businesses through the EFG<\/abbr><\/a> scheme, the highest since quarter 3 2010. There is a maximum 6 month period between loan offer and draw down. The number of loans offered was the highest level since quarter 1 2011.<\/p>\n<\/li>\n

  2. \n

    \u00a384 million was lent to businesses by banks through the EFG<\/abbr><\/a> scheme in quarter 3 2013, the highest since quarter 1 2011.<\/p>\n<\/li>\n

  3. \n

    Compared to the same quarter last year, the value of EFG<\/abbr><\/a> loans offered increased from \u00a396 million to \u00a3111 million, an increase of 15%.<\/p>\n<\/li>\n

  4. \n

    Since May 2010, the EFG<\/abbr><\/a> scheme has supported 13,411 loans and enabled the lenders to offer just under \u00a31.4 billion.<\/p>\n<\/li>\n

  5. \n

    A full breakdown of EFG<\/abbr><\/a> lending is available at \u2018Understanding the Enterprise Finance Guarantee\u2019<\/a>.<\/p>\n<\/li>\n

  6. \n

    A recent independent study found that the EFG<\/abbr><\/a> scheme had delivered a net \u00a31.1 billion benefit to the economy, and is value for money as every \u00a31 invested by government delivers \u00a333.50 to the economy. The full report is available at Economic Evaluation of the Enterprise Finance Guarantee Scheme<\/a><\/p>\n<\/li>\n

  7. \n

    The changes the government has made to the EFG<\/abbr><\/a> scheme include:<\/p>\n<\/li>\n<\/ol>\n