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The Small Firms Loan Guarantee (SFLG) was a UK government loan support scheme for small businesses that ran from 1981 to January 2009. Under the scheme, participating banks could lend up to a maximum of £250,000 to eligible UK companies trading less than five years with a turnover of less than £5.6 million, and have 75% of the loss at default ...
This note examines the small firms loan guarantee scheme (SFLGS) which provides loan guarantees for firms with viable business funds but limited track records and collateral which would not otherwise be funded by banks.
The Small Firms Loan Guarantee (SFLG) helps to overcome this by providing lenders with a government guarantee against default in certain circumstances. The cost of the guarantee is two per cent per year on the outstanding amount of the loan, payable to the DTI.
9 mar 2017 · In this paper, we study the determinants of the spread charged by banks under a UK policy intervention scheme, aimed at supporting access to the credit market for small firms through guarantee backed loans.
Under the scheme, participating banks could lend up to a maximum of £250,000 to eligible UK companies trading less than five years with a turnover of less than £5.6 million, and have 75% of the loss at default met by the government.
Loan guarantees are generally short-term (one year), but can rise to up to six years. Pricing generally starts at 25 basis points (bps) for one-year SME guarantees and 50 bps for one-year corporate guarantees. This rises to 100 bps and 200 bps respectively for four and six-year maturity.
1 sie 2013 · This paper examines whether the UK Small Firms Loan Guarantee Scheme (SFLG) provides value-for-money to the UK tax payer, presenting a regression based performance approach which then feeds into a formal cost–benefit analysis.
