Annex A
HOW DOES A BUSINESS APPLY FOR AN EFG LOAN?
STEP ONE—EVALUATION
OF BORROWING
PROPOSAL (ASSESSED
BY PARTICIPATING
LENDER)
— EFG Applicants will potentially need
to provide all the information normally required by a lender in
connection with a loan application, typically including:—
business plan, including details of the purpose of the loan and
details of other borrowings of the business;— suite of financial
information—to include historic trading figures, management
accounts and financial projections; and
— details on any other publicly funded
support received by your business within the past three years.
STEP TWO—EFG
ELIGIBILITY CRITERIA
CHECK (ASSESSED
BY PARTICIPATING
LENDER)
— Small businesses in the UK with an annual
turnover of up to £25 million.— Borrowing requirement
of £1,000-£1 million.
— Term of loan is minimum three months,
maximum 10 years.
— Unable to provide any or sufficient additional
security to the Lender.
— Most sectors are eligible. The principal
exclusions relate to businesses in the coal, real estate and insurance
sectors. Your lender will advise if any of these restrictions
affect your business when they consider your loan application.
— Is the borrowing for one of the EFG eligible
purposes.
After assessing the above two areas, the Lender
will then advise you on whether your business is eligible for
an EFG Loan. Please note that Lenders may ask for additional security
in conjunction with the granting of an EFG Loan.
Cost to Your Business:
— In addition to regular capital and interest
payments to your lender, plus any arrangement fee which they may
charge, a premium is also payable to BERR.— The premium
is equivalent to 2% per annum on the outstanding balance of the
loan, assessed and collected quarterly in advance throughout the
life of the loan.
— A discount of 25% will be applied to
all premiums due and successfully collected during 2009.
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