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Small Firms Loan Guarantee
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 see list of lenders.
Further information can be found in the SFLG booklet (pdf, 156kb). Hardcopies can be obtained free from the DTI Publications Orderline Tel: 0870 1502500 or from the DTI
website.
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