Barclays has announced it is making a further £88million available in business loans for small and medium enterprises through the Enterprise Finance Guarantee (EFG).

The EFG is a Government initiative, introduced to help SMEs through the financial downturn, improving the availability of capital while encouraging business growth and development.

Through the scheme, viable businesses with a sales turnover of up to £25million are offered a lifeline through access to business loans which they may otherwise be unable to get due to having insufficient security.

A proportion of the debt is guaranteed by the Government if the customer is unable to repay the loan.

The additional funding for Barclays business loans will join the £150million of EFG loans it has already made in the last year.

Commenting on the success of the scheme, Steve Cooper, managing director of Barclays Local Business, said: “Time and again over the last year EFG has proven to be a superb way to support worthy businesses.

“We’re a big believer in EFG – through it we’ve been able to assist over 1,650 businesses with loans.”

Of the extra funding which Barclays loans has added, Mr Cooper said: “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.”

The EFG covers a “key gap in the market,” he said, to which Trade, Investment and Small Business Minister Lord Davies added:

“The Enterprise Finance Guarantee has helped thousands of viable businesses access the finance they need to withstand the recession and prepare for recovery. Following its recent extension, it will continue to play a vital role in encouraging enterprise and investment and driving productivity and growth throughout the UK economy.”

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