Small Firms Loan Guarantee Scheme

Also read: Financial Projections and Business Plans

Our experts will be able to help your business secure a loan through the DTI’s Small Firms Loan Guarantee Scheme. You can contact us online or call us on 0800 0735353 to speak to an expert.

The SFLGS is where the DTI guarantees loans for the small firms (up to £5m turnover for manufacturing businesses, £3m turnover for other businesses) that have feasible business propositions, but cannot get normal loans due to lack of security.

Loans can be available for up to £100,000 (£250,000 if the business has traded for more than 2 years0 and they will be repayable within 10 years.

The lender is guaranteed 75% of the loan with an SFLGS, the borrower in return pays the DTI a premium of 2% per annum on the outstanding balance. The business direction of the loan is between the lender and the borrower.

Most business activities are acceptable but there are always a number of exclusions.
The SFLGS only applies where an additional finance is provided to the business, it may not be used to buy shares or replace existing finance. For this scheme to apply the borrower must give all assets up for security.

The full details can be found in the SFLGS booklet (PDF, 156kb) on the DTI website.

Whats your next step:

You can either use our online enquiry form or
contact us direct for immediate human contact on 0800 0735353.
You are under no obligation and you pay no fees until the commercial finance product is arranged.