Wednesday 21 January 2009

New help for businesses facing the credit crunch

The Government is launching a new package of measures under the Real Help For Businesses Now initiative.

These measures are in the form of three funds and are designed to ensure that businesses can access working capital, trade and investment finance and that banks can guarantee certain loan activity.

Enterprise Finance Guarantee - for Businesses: Government will guarantee bank loans to Small and Medium sized Enterprises (SMEs) to 75% of loan value. This will enable lending to those viable businesses who, in these current economic times, are unable to get a loan. This measure will also include the ability to consolidate part or all of an existing loan or overdraft with their existing bank. The Enterprise Finance Guarantee is part of the Solutions for Business portfolio. Businesses can find out more from the website and can apply direct through the main banks and, in the near future, other smaller lending organisations.
For more information visit http://www.blsw.co.uk/BLDevCorLZ//lz.aspx?p1=05002561S875&CC=&w=1484

Capital For Enterprise Fund - for Businesses: A scheme targeted at economically viable SMEs (plcs) who have exhausted normal sources of finance and would benefit from an equity injection and/or mezzanine loan to enable them to restructure their balance sheets and continue their growth. The Capital for Enterprise Fund is part of the Finance for Business product in the Solutions for Business portfolio. Businesses will be able to access the fund through a dedicated BERR helpline 0845 459 9780 or by visiting http://www.blsw.co.uk/BLDevCorLZ//lz.aspx?p1=05002561S875&CC=&w=1485

Further information and support is available on the Business Link websitehttp://www.blsw.co.uk/BLDevCorLZ//lz.aspx?p1=05002561S875&CC=&w=1483
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1 comment:

The Pub Consultancy Service said...

When these schemes were announced I contacted my business manager who responded in an email and I quote:
'The details of the "new Scheme" is now out and unfortunately it is almost exact the same as the existing SFLG scheme, so as far as I can tell is of no extra help to business struggling in the economic climate.'

A local Business Link stated almost the same thing. Put in it's simplist terms, the banks are to use the same commercial criteria as they have always done, ie, credit scoring etc. So if you've been previously refused nothing will change.

Once again the Government have let us down.

21 January 2009 at 17:54

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