Enterprise Finance Guarantee 'helps almost 6,000 firms'
23rd December 2009
Nearly 6,000 small businesses have been helped by government-backed loans issued through the Enterprise Finance Guarantee (EFG).
The Department for Business, Innovation and Skills revealed that more than GBP 580 million in loans has been provided to around 5,840 companies through the scheme.
Research into the effectiveness of the EFG found that 94 per cent of small firms believe their cashflow and product development plans were improved by the loan.
The survey also discovered that 57 per cent of companies were able to save jobs because they received an EFG loan, while around 60 per cent claimed the funding will allow them to create new positions in the future.
Lord Davies, the trade, investment and small business minister, commented: 'These impressive results show the government is providing real help to businesses when they need it, helping to secure jobs and give businesses the capital they need to invest and grow.'
Recently, Ian Lucas, minister for business and regulatory reform, announced that firms are saving almost GBP 3 billion a year because of the government's Simplification initiative, which aims to reduce the amount of paperwork and red tape.