Last chance to get Small Firms Loan Guarantees?
Written by: John Courtney, Strategy Consulting Limited
The leader of our SFLG team commented this week: "I called the DTi today and they say that the new regulations will be in place by the end of the year and maybe by the end October/beg November. They are working on it now and expect to make an announcement with exact dates of the roll out about September time. The deadline will mean that any companies over 5 years old will need to have their loans approved by the lenders and arrived on the desk of the DTi before the cut off date. Any received after that date will not be likely to get funding. The associated publicity may also lead to a rush of applications which in turn might cause delays."
Earlier this year the Government welcomed and accepted Teresa Graham's recommendations on the future of the Small Firms Loan Guarantee (SFLG), designed to maximize the support that the scheme offers to small firms. Key points of the recommendations -
. Expanding the lending limits to £250,000 per business for all eligible businesses
. Raising the turnover limit to £5.6m for all eligible businesses
. Reducing bureaucracy by making changes to the operation of SFLG
. Better targeting of SFLG at start ups and young businesses by introducing a maximum age limit for eligibility of three years' trading activity, and reserving a segment of SFLG funding for lenders with a clear focus on high-growth businesses
. Incentivising an increase in SFLG penetration, particularly wider geographic availability throughout banks' network of branches
. Encouraging new lenders to join the scheme
. Allowing successful serial entrepreneurs to benefit by removing the current £250,000 limit on lending to any individual
POSSIBLE ACTION - Apply now while you are still eligible and before possible delays? We are currently averaging 8-10 weeks for approval.
More information www.strategyconsultinglimited.co.uk/sflg.shtml or from Stephanie Dickson on 0845 838 0936
J. G. Courtney AIMC, MABS, MInstD
Strategy Consulting Limited
Funding: BUSINESS ANGELS - SMALL FIRMS LOAN GUARANTEES - GRANTS - PROPERTY FINANCE
Strategy: STRATEGY - BUSINESS PLANNING - NON-EXECUTIVE DIRECTORS - WORKSHOPS
Marketing: MARKETING STRATEGY - SEARCH ENGINE OPTIMISATION
About the Author
The Managing Director of Strategy Consulting Limited,(www.strategyconsultinglimited.co.uk) John Courtney has been a Company Director for over 20 years, and has been a Non Executive Director for several SME's. John has trained at The Academy of Business Strategy and is also a visiting lecturer on the MBA course at Cranfield University School of Management.
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