Durham business school released research findings last week of a scheme that the government introduced to help small and medium sized businesses (SMEs). The Enterprise Finance Guarantee (EFG) scheme was launched to bring stability and security to both existing SMEs and start-up businesses.
So far, the EFG scheme has helped 100,000 SMEs secure almost Â£1.04billion worth of loans, these loans now account for 1-2% of overall money borrowed by SMEs from banks. The scheme is not only helping small businesses find their feet, GOV.UK announced that every Â£1 invested by the government has delivered Â£33.50 to the economy.
In the UK, since 2010 the scheme has:
- Produced 6,500 new jobs
- Saved over 12,000 jobs
- Provided Â£1.1 billion net benefit to the economy.
The scheme has helped many small and large businesses, and has had a lot of positive reviews. Will Farnell of Farnell & Clarke, Accountants Norwich have seen an increase in people approaching them and looking to start new businesses. He explains “because the government acts as guarantor for 75% of the loan, it means people who couldn’t normally apply for loans now can - on average, businesses are borrowing around Â£10,000. 80% of those borrowing from the EFG scheme would not have been able to secure the loan as they would not have had sufficient collateral. The increase in small and medium businesses in Norwich and the rest of the UK is great for the economy. We are exposed to the fresh ideas and innovative thinking that the country needs to grow and develop.”
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Original Source: Accountants In Norwich Praise Enterprise Finance Scheme For Its Success In Their Region