Note: Changes to the Small Firms Loan Guarantee scheme came into effect on 1 April 2003 and cover:

• A single guarantee rate of 75% for all new loans

• Sector exclusions removed for retailing, catering, coal, hairdressing & beauty parlours, house & estate agents, libraries, museums & cultural activities, motor vehicle repair & servicing, steel and travel agents

• Maximum turnover level for non-manufacturing businesses increased from £1.5 million to £3 million

• Premium paid by the borrower set at 2% per year on the outstanding balance for all new loans

Loans are available for periods between 2 and 10 years on sums from £5,000 to £100,000 (£250,000 if your business has been trading for more than 2 years). SBS guarantees 75% of the loan. In return for the guarantee the borrower pays SBS a premium of 2% per year on the outstanding amount of the loan. The commercial aspects of the loan are matters between the borrower and the lender.

To be eligible you must be a UK company with an annual turnover no more than £5.6 million. Many business activities are eligible but there are a number of exclusions. Loans are available for most business purposes although there are some restrictions. If you would like to make an application please do this direct to one of the lenders who are involved with the scheme. They are :

The Small Business Service (SBS) is looking at adding to the list of approved lenders.

You can get further information about the scheme from any of the lenders listed above or else from the SBS Loan Guarantee Unit.

St Mary's House

c/o Moorfoot

Sheffield

S1 4PQ

Tel 0845 001 0032

Fax 0114 279 4374

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