Small Business Loans: New guaranteed loan scheme by DTI

State Securities to offer Department of Trade and Industry's Loan guarantee scheme to small businesses.

August 2002

State Securities has signed a formal agreement with the Department of Trade and Industry (DTI) to offer the Small Firms Loan Guarantee Scheme (SFLGS) to small firms.

Under the scheme, State Securities will provide the DTI guaranteed loans for small firms in conjunction with advancing asset based finance to businesses who have viable proposals but due to a lack of track record have failed to obtain finance through conventional channels.

Small Business Loans for UK-based firms seeking funding

Eligible companies must be UK-based with an annual turnover of no more than £1.5m (£5m if you are a manufacturer). The guarantee generally covers 70% of the outstanding loan. This rises to 85% for established businesses trading for two years or more. Loans can be for amounts between £5,000 and £100,000 (£250,000 for established businesses) and over a period of two to ten years.

Paul Burke, Business Development Director at State Securities, said: “The ability to provide The Small Firms Loan Guarantee in conjunction with an entrepreneurial approach to asset based finance will be an exciting partnership and will be a great boost for UK small businesses”.

Customers requiring assistance with their business funding requirements should call 01489 775600 or e-mail: lgsadministration@statesecurities.plc.uk