Rates Up

Rates Up on Enterprise Finance Guarantee Loans

Rates Up on Enterprise Finance Guarantee Loans

The Federation of Small Businesses (FSB) has criticised the Government’s decision to increase the rate of interest it charges small firms for loans under the Enterprise Finance Guarantee Scheme. On 1st January, the rate the Government is charging small firms for guaranteed loans under the EFG scheme increased from 1.5% to 2%. According to the Government, last year’s 1.5% rate was only intended to be used for a short period until the end of a temporary exemption from European Commission rules expired on 1 January. “In addition to regular capital and interest payments to their lender and any arrangement fee which they may charge, firms must pay a premium to the Government,” said a Department for Business, Innovation and Skills (BIS) spokesperson. “The premium is... »