Small Business Loan

A small business loan enables small businesses with a sound business plan to borrow money. The Small Firms Loan Guarantee scheme (SFLG) is a joint venture between approved lenders and the DTI.

Changes to the scheme means that loans are available for companies who have been trading less than five years. It is not a requirement that borrowers provide personal guarantees, but the bank will ask for personal security before an application is considered. The DTI are not the lenders; they leave commercial decisions to the banks.

The DTI provide 75% of the security on acceptance of the application. Some businesses are not eligible and companies with more than 200 employees will not be considered. Also, companies with prior-year turnover in excess of £5.6m should not make application.