British Business Bank’s Enterprise Finance Guarantee-backed lending up 33% in final quarter of 2013 versus same period in 2012
Data released today showed that the British Business Bank’s Enterprise Finance Guarantee (‘EFG’) scheme supported £90.6m of lending to businesses in the final quarter of 2013, an increase of 33% compared to the same period in 2012. Lending supported by the EFG’s 42 lenders for the whole of 2013 was £333m, 16% higher than for 2012.
The data also showed that there has been a steady quarterly increase in the average size of loans drawn down by businesses over the last year, reaching £116,000 in the most recent quarter – the highest level over the EFG’s 5-year history. The average loan size in the final quarter of 2012 was £99,000.
The detailed report is available on the British Business Bank’s website and can be viewed by following this link.
Media enquiries Jason Raj, Press Officer, Department for Business, Innovation and Skills
0207 2155978, firstname.lastname@example.org
Notes to Editors
Enterprise Finance Guarantee
- EFG is a demand-led scheme which allows banks to lend to SMEs who would otherwise not receive credit, by providing the banks with a government guarantee for 75% of the loan value.
- An independent study last year found that the EFG scheme had delivered a net £1.1 billion benefit to the economy, and is value for money as every £1 invested by government delivers £33.50 to the economy.
- The separate EFG trade credit pilot continues to benefit small businesses in the construction sector.
- EFG is one of a range of government-backed schemes being brought together under the British Business Bank programme, which will use its £3.9bn of resources as a catalyst to unlock up to £10bn of new finance over the next 5 years.
- The British Business Bank programme works in partnership with the private sector to increase further the amount of finance available and the choice of finance providers to businesses.
Selected 5-year EFG metrics
- EFG has supported over 20,000 loans worth £2.1bn drawn down by businesses
- 23% of the loans drawn down have been by businesses operating for 1 year or less
- 32% of the loans drawn down by value have been for businesses in: Manufacturing; Professional, Scientific and Technical Activities; and Information and Communication sectors
- Over 70% of loans drawn down have been for £100,000 or less
- 73% of loans have been drawn down by businesses outside London and the South East.
British Business Bank
The British Business Bank will support economic growth by bringing together public and private sector funds to create more effective and efficient finance markets for smaller and medium-sized UK businesses. The British Business Bank is a key element of the Government’s Industrial Strategy, and its programme is already contributing to making the UK the best place in Europe to start, grow and finance a business.
The British Business Bank programme is currently run directly by the Department for Business, Innovation and Skills and is not authorised or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. British Business Bank plc will operate as a Government-owned financial institution once HM Government has received European Commission state aid clearance, which is expected in 2014.