What is the enterprise finance guarantee scheme?

The Enterprise Finance Guarantee (EFG) programme is managed by the British Business Bank on behalf of, and with the financial backing of, The Secretary of State for Business, Energy and Industrial Strategy.


  • EFG is a UK Government Guarantee Scheme to assist SME’s to access finance that may not otherwise be available
  • The EFG Guarantee is provided by the UK Government to Us (the lender) and not to You (the borrower)
  • It enables Us, (the lender) to provide to you (the borrower) with funding that We would otherwise be unable to provide due to lack or inadequacy of security.
  • It enables You (the borrower) to obtain a loan which would not otherwise be available to You
  • The EFG Guarantee provides Us, (the lender) with a partial guarantee, should You (the borrower) default on the loan.



  • The provision of the EFG Guarantee does NOT remove any of Your (the borrower) liability for repaying Your EFG Supported Facility, nor (if applicable) reduce the liability of any Personal Guarantee provided
  • In the event of You (the borrower) defaulting on Your loan repayments, We (the lender) are entitled to seek to recover the full amount outstanding from You (the borrower) or any Guarantors
  • Any monies received by Us, (the lender) under the Government Guarantee does not reduce Your liability in any way
  • You, (the borrower) are responsible for repaying the whole of the loan at all times.


Guarantee Fee

  • A Guarantee Fee is payable by You (the Borrower) to the UK Government, as a contribution towards the cost of providing the EFG Scheme.
  • The Fee is based upon the forecast of the Outstanding Capital Balance of Your EFG supported loan facility, multiplied by an annual rate of 2%.
  • This fee will be payable over the whole term of the EFG Supported facility and will be collected on a quarterly basis in advance from Your business bank account by direct debit.
  • The due date and amounts of each guarantee fee payment will be specified to You by the Lender in an EFG Guarantee Fee Payment Schedule.
  • If You (the borrower) do not pay this guarantee fee as and when it falls due, the EFG Guarantee to Us (the lender) may fall away and you may be asked to repay the loan facility in full.
  • If the facility is repaid earlier than the term end date, any payments that have already been paid will not be refunded
  • If the facility is ‘part settled’ during the term of the facility, then a revised payment schedule will be issued by the Lender notifying you of the reduced and revised payments
  • Any queries in relation to your EFG Supported facility should be raised directly to Us, (the lender)

Further information about the Enterprise Finance Guarantee Scheme can be found on the British Business Banks website.