The scheme enables Barclays to lend to viable businesses that, because they cannot offer sufficient security to meet normal commercial lending, would not otherwise be able to get the finance for their business to survive and grow.
Barclays has worked closely with Government on the scheme, and has already made available over £150 million in EFG loans in the last year, or almost one in every four EFG loans across the UK.
“Time and again over the last year EFG has proven to be a superb way to support worthy businesses,” said Steve Cooper, managing director of Barclays Local Business.
“We’re a big believer in EFG – through it we’ve been able to assist over 1,650 businesses with loans.
“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.
“Enterprise Finance Guarantee covers a key gap in the market – companies that are viable, perhaps even strong, but could not get a loan because they do not have sufficient security.”