Annex B
LIST OF CfEL ACCREDITED LENDERS FOR THE ENTERPRISE
FINANCE GUARANTEE SCHEME
— Airdrie Savings Bank— Alliance
and Leicester Commercial Bank
— Bank of Ireland (NI only)
— Business Enterprise Fund
— Business Finance Solutions
— Northern Bank (NI only)
— The Royal Bank of Scotland
— South West Investment Group
REFERENCES[1] Analysis
shows the £1.3 billion provision of EFG loans should meet
the majority of potential demand from viable businesses not being
able to raise finance, based on a number of assumptions including
the likely demand for finance, estimates on the proportion of
viable businesses and also the size of finance sought.
[2] The turnover limit is broadly equivalent
to the maximum threshold for a company to qualify as a medium
sized company (£25.9 million) in accordance with the Companies
Act 2006 as amended on 6 April 2008. The turnover limit under
the Small Firms Loan Guarantee (SFLG) was set in accordance with
the Companies Act turnover limit for a small firm (then £5.6
million).
[3] On 12 May 2009, the Government announced
that capital lent to the Community Development Finance Institutions
(CDFIs) by accredited lenders can be covered under the EFG scheme.
Because of the higher risk of the lending that they undertake,
and the difficulties they have in raising capital to onward lend,
CDFIs can now receive bank loans worth up to £20 million
through the EFG scheme. This will operate independently from EFG
loans made by the CDFI should they be an accredited lender thus
providing a guarantee at each level (Bank to CDFI and CDFI to
SME). This will ultimately provide additional security for banks
lending to EFG accredited CDFIs.
[4] Definitions: Eligible—ie where
business applying fits CfEL criteria: in permitted business sector,
turnover upto £25 million, loan between £1k and £1
million; Offered—facility letter (ie offer letter)
issued by lender to business applicant; Drawn—facility
letter signed by applicant returned to lender, all security checks
completed and loan provided.
[5] Business data taken from SME Statistics for
the UK and Regions 2007.
May 2009
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