The Enterprise Finance Guarantee (EFG) scheme has boosted the dwindling UK economy by over £1.1 billion, according to independent research.
The scheme, introduced in May 2010 as a means of helping small businesses access finance, is thought to have benefited over 10,000 SMEs. For every £1 the government invested, the economy has been boosted by £33.50.
The research, published today, also revealed several other ways in which the scheme has aided the UK’s small businesses. It is thought to have created 6,500 jobs and saved a further 12,375.
Business Minister Michael Fallon commented: “Enterprise Finance Guarantee loans are delivered through the banks, and I want to see them making more use of the scheme.
He added: “This latest research shows that the EFG is helping precisely those businesses who can't get finance elsewhere. It is getting money to where it is needed, saving jobs, and delivering a huge benefit for the wider economy.
“Clearly the demand is there for this type of financial support so we must start to see an increase in take-up. I have already begun publishing EFG lending by each individual bank, because businesses should know which bank they are best off approaching and I will continue holding the banks to account until lending levels improve.”