It used to be that the SFLG (Small Firms Loan Guarantee) scheme was the only real support that government offered SMEs, and very good it was, too. With the current financial turmoil small businesses now have their some further schemes, albeit not on the scale of the scores of billions directed to support UK banks. Anyway, they could be worth a look.
A £75m Capital for Enterprise Fund (£50m from Government augmented by £25m from the banks) is able to invest in small businesses which need equity. The Fund is open to UK SMEs who are economically viable in the long term. The fund will enable them to raise new long-term finance, using equity finance (£250k to £2m) to restructure their balance sheets and continue their growth. Contact the Registration Helpline on 0845 459 9780.
An Enterprise Finance Guarantee Scheme, which will secure up to £1.3bn of additional bank loans to small firms with a turnover of up to £25m. The government guarantees 75% of the loan, with the banks liable for 25%. Participating banks include Barclays, Clydesdale/Yorkshire Bank, HBOS, Lloyds TSB, RBS/NatWest and Northern Bank. The banks will want to see security sufficient to cover their 25% at risk. The intention is for loans of between £1,000 and £1m to be made available, repayable over 10 years.
Your local Business Link website and the main BERR website are good on-line places to visit.