The raison d’ệtre of the government’s Small Firms Loan Guarantee, is being called into question by fresh figures showing poor uptake.
The loan, which enables firms to borrow up to £25,000 over ten years, is not even on the radar for two out of three company owners who could potentially be eligible.
Two years ago, more than half of company owners said they were aware of the scheme, but today just 37% claim to know it exists, according to figures from Venture Finance.
Obtained by The Mail on Sunday’s Financial supplement, the full figures show only about a third of company owners understand how they can apply for the scheme - the SFLG.
Last month, official figures added to the gloomy picture: The Daily Telegraph reported the number of loans secured fell from 7,100 in 2005, to 2,700 last year.
Changes to the eligibility criteria of the scheme, such as firms needing to have five years' trading history, were hinted to be the cause of the decline.
Aug 22, 2007
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