Your client’s gateway to Government funding schemes

Date: 20-10-2014

Tagged as: ArticleGameplanGrowthRegulationFundingLending


A number of Government funding schemes are available to support the re-building of a sustainable UK economy. Find out more about how these schemes can help your clients achieve their ambitions and how we can help you access them.

  • The Enterprise Finance Guarantee scheme supports businesses with workable proposals for funding but lacking in security.
  • The Regional Growth Fund Assisted Asset Purchase Scheme provides grants to private sector projects and programmes which will secure or create jobs.

Throughout the year, business indicators have pointed to a revived economic landscape, bringing with it opportunities for businesses of all sizes. As Tim Hinton, Managing Director, SME & MM Banking, Commercial Banking at Lloyds Bank explains: “Businesses across the country are becoming increasingly dynamic in their response to their growing confidence in the UK economy, developing short- and long-term strategies to support their ambitions. Their plans often need lending support, and we continue to help clients explore all options available, including new and alternative sources of funding, to help them make the most of every opportunity.”

Securing the funding necessary for growth in today’s economic environment is not always a clear-cut exercise. Regulation change has made it harder for your customers with a lack of security or trading history to get traditional funding products, meaning they need alternatives to traditional finance or funding that complements their existing loan or overdraft facilities.

Being able to support your clients in accessing the funding they need could be crucial to supporting their growth. As strong advocates and supporters of Government funding schemes designed to help businesses access finance, we can offer you and your clients additional gateways to growth.


Enterprise Finance Guarantee

Operated by the British Business Bank through the Department for Business Innovation and Skills, the Enterprise Finance Guarantee scheme (EFG) saw 33% year on year growth in 2013. In the final quarter of 2013, the scheme supported £90.6m of lending to UK businesses.

What and who is EFG aimed at

The EFG is aimed at supporting businesses with a workable business proposal but lacking sufficient security. It can offer your clients an accessible and viable funding alternative when they would be unable to secure traditional funding, either because of lack of security or lack of trading history.

Features and benefits of the EFG

The EFG offers a range of benefits to your clients, including flexibility and the potential of discounted lending rates. Further details of the features and benefits of the EFG can be found here:

  •  Loans are available from £25,001 to £600,000 over one to 10 years or from £600,001 to £1.2m over one to five years.
  •  Interest rates can be variable or fixed, depending on circumstances.
  •  Flexible draw down arrangements.
  •  Capital repayment holidays may be available in certain circumstances.

Eligibility criteria for the EFG

There are a number of different criteria a business must match in order to apply for an EFG and Lloyds Bank can talk through the process. The major condition is that your client’s business's turnover must not exceed £41m. It is also worth noting that businesses supported under EFG are required to pay an additional 2% annual premium which partially covers the cost of providing the guarantee.

For more details, visit the Lloyds Bank website or contact your relationship manager.

Lending is subject to status.

Regional Growth Fund - Assisted Asset Purchase Scheme*

The Government’s Regional Growth Fund (RGF) has been operating across England supporting projects and programmes that create economic growth.

What and who the RGF is aimed at

The scheme is aimed at businesses that need to purchase new assets in order to protect existing or create new jobs, but who lack the deposit necessary to secure funding through traditional means.

Features and benefits of the RGF

The RGF Assisted Asset Purchase scheme offers your clients a variety of advantages to help them fund business growth. With funding ready to be allocated, your clients could benefit from:

  • Securing a grant for up to £500,000 for up to 20% of the asset cost for small enterprises and 10% for medium-sized enterprises.
  • The grant being utilised towards a deposit for the purchase of an asset, with the remaining funding (minimum £100,000) provided by a suitable Lloyds Bank Commercial Finance Hire Purchase agreement or business loan.

Eligibility criteria for the RGF

Some of the main eligibility criteria for the RGF Assisted Asset Purchase Scheme are set out below. To be eligible, your client must be:

  • Looking to purchase an asset located in England but outside of London (restrictions apply in the South East).
  • Committed to creating and/or protecting one job for every £15,000 of grant received and for a minimum of 12 months.
  • Providing confirmation of job creation or protection through an independent accountant (at their cost) within 30 months after drawdown, or six months after the job target has been achieved (if earlier).
  • A small or medium-sized enterprise1 employing fewer than 250 people and have a turnover of more than £500,000 and less than £50m.
  • Not receiving any other state aid for their asset purchase. Otherwise, this amount must be deducted from the maximum possible grant.
  • Not have previously received more than £500,000 of grants under the Regional Growth Fund from Lloyds Banking Group.

You or your clients can get more details by visiting our website or by speaking to your relationship team.

Lending is subject to status.

*The full £25m of grant funding has now been successfully allocated through the Assisted Asset Purchase Scheme consequently; this product is no longer available.

Meeting the needs of you and your clients

With funds available, our relationship team would be delighted to discuss with you whether your clients can make use of the Government schemes to support their businesses. Our experience and knowledge can be used to place them in the best possible position to secure the funds they need to support growth. Why not contact us today?

1 To establish whether you are a small or medium-sized enterprise within the meaning of the European Commission’s General Block Exemption Regulation definition you must complete the EC's online 'test', or instruct a legal or accountancy firm to carry out an assessment of whether or not you are a small or medium enterprise for these purposes.

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Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under Registration Number 119278.

Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.

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