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Small Firms Loan Guarantee (SFLG)
 

Main Terms and Conditions

The SFLG guarantees loans from the banks and other financial institutions for small firms that have viable business proposals but who have tried and failed to get a conventional loan because of lack of security.

Loans are available for periods of between two and ten years on sums from £5,000 to £100,000 (£250,000 if your business has been trading for more than two years).  SFLG guarantees 75% of the loan.  In return for the guarantee, the borrower pays DTI a premium of 2% a year on the outstanding amount of the loan.  The commercial aspects of the loan are matters between the borrower and the lender.

To be eligible, you must be a UK company with an annual turnover of no more than £3m (£5m if you are a manufacturer).  Many business activities are eligible but there are a number of exclusions.  Loans are available for most business purposes although there are some restrictions.

If you would like to make an application, please contact one of the lenders who are involved in SFLG.  They are: 

  • Bank of Ireland (NI only)
  • Bank of Scotland
  • Barclays Bank
  • Clydesdale Bank
  • Co-operative Bank
  • Doncaster Business Advice Centre
  • Emerging Business Trust Ltd
  • First Trust Bank/Allied Irish Banks
  • HSBC Bank
  • Lloyds TSB Group plc
  • National Westminster Bank
  • Northern Bank Ltd
  • Northern Enterprise
  • Northern Investors Company Ltd
  • OneLondon Ltd
  • Royal Bank of Scotland
  • State Securities plc
  • Triodos Bank
  • UK Steel Enterprise
  • Ulster Bank Ltd
  • Venture Finance plc
  • Yorkshire Bank
  • Yorkshire Enterprise Ltd

New Lender Recruitment

The Government is keen to encourage access to SFLG from a wide lender base.  Therefore, any existing lenders who wish to operate SFLG will now be able to apply at any time to become an approved lender.

Further details about becoming an approved lender can be obtained by contacting the dti’s SFLG unit.  Contact details below.

General Information

Further information about the scheme is available in the SFLG booklet below.

SFLG booklet (pdf, 156kb)

Hardcopies can be obtained free from the DTI Publications Orderline Tel: 0870 1502500 or from the DTI website.

If the booklet does not answer your queries, contact one of the lenders of the Small Firms Loan Guarantee Unit:

Tel: 0845 001 0032/0033
Fax:  0114 279 4374

e-mail: sflgs@sbs.gsi.gov.uk

The SFLG unit will respond to any enquiry within 15 working days.


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