Loans - EFG loan scheme 'benefitting businesses'

A government-backed business loan scheme is to be extended, it has been revealed.

Small and medium-sized enterprises (SMEs) could find that their business accounts receive a boost in the coming weeks, thanks to the extension of a government-backed lending programme.

Under the Enterprise Finance Guarantee (EFG) initiative, Barclays reveals that it will able to offer loans to those firms struggling to access finance products in the current economic climate.

Available to UK-based SMEs with a sales turnover of up to £25 million, a total of £88 million in funding is to be made available by the financial services provider to not only help them survive the challenges presented to them as the recession continues but also to fund growth as signs of recovery begin to emerge.

"Time and again over the last year EFG has proven to be a superb way to support worthy businesses," Steve Cooper, managing director of Barclays Local Business, states.

He adds: "The new funding we're announcing is going to continue that good work, to help more businesses become successful and help pull the UK out of recession."

Pointing out that the bank is a "big believer" in the government lending scheme, Mr Cooper reveals that more than 1,650 businesses have received loans.

Indeed, Barclays states that it has issued some £150 million in EFG loans to business accounts over the past 12 months.

Lord Davies, trade, investment and small business minister, adds the extension of the lending initiative extension will "play a vital role in encouraging enterprise and investment".

One of the firms to have benefited from the programme is Plymouth-based publishing and marketing communications firm Cornerstone Vision, which has used the money received to invest in new technology.

Organisations seeking out business bank accounts may also want to take note of comments from Richard Lambert, director-general of the Confederation of British Industry, who stated that although the financial services sector has experienced problems in recent years, it is imperative that firms are able to access competitive financial products.

By Nate Sawyer