Enterprise Finance Guarantee (EFG)
Government-backed finance for businesses without sufficient security.
The Enterprise Finance Guarantee (EFG) \u2014 formerly known as the Small Firms Loan Guarantee (SFLG) \u2014 is a UK government-backed scheme designed to help viable businesses access the finance they need when they lack the security to obtain a conventional commercial loan.
Under the EFG scheme, the government provides a guarantee of 75% of the loan to the lending institution, removing the security barrier and enabling the lender to approve facilities that would otherwise be declined. Aberdeen Corporate Finance works with EFG-accredited lenders to secure guaranteed funding for eligible businesses.
Key Features
75% Government Guarantee
The government guarantees 75% of the loan to the lender, removing the security barrier that prevents many viable businesses from accessing finance. This does not mean the borrower is only liable for 25% — you remain fully responsible for the entire loan.
Loans from £1,000 to £1.2 Million
EFG facilities range from £1,000 to £1.2 million per business. The scheme supports term loans, revolving credit facilities, invoice finance, and asset finance — providing flexibility to match the facility type to your specific requirement.
Terms Up to 10 Years
Repayment terms of up to 10 years are available, providing manageable monthly repayments that align with the purpose of the borrowing. Capital repayment holidays of up to 2 years may also be available.
Annual Guarantee Fee
The borrower pays an annual guarantee fee of 2% on the outstanding loan balance to the government. This is in addition to the lender's interest rate and is the cost of the government guarantee that enabled the loan to be made.
Wide Sector Coverage
The EFG scheme is available to businesses in most sectors with annual turnover of up to £41 million. Manufacturing, services, construction, technology, hospitality, retail, and professional services are all eligible.
New & Established Businesses
Both established businesses and start-ups can access EFG funding. For newer businesses, a strong business plan and management track record are particularly important in securing lender support.
Eligibility Criteria
EFG at a Glance
Government Guarantee
Maximum Facility
Maximum Term
Annual Guarantee Fee
Important Notice: The EFG scheme is administered by the British Business Bank. Eligibility is determined by the lending institution. The government guarantee is to the lender, not the borrower \u2014 the borrower remains fully liable for the loan. Aberdeen Corporate Finance Limited is not regulated by the FCA.
Could EFG Help Your Business?
Contact us to assess your eligibility and arrange government-backed business finance.
Check Eligibility