The British Business Bank’s Enterprise Finance Guarantee (EFG) programme has generated £415m of economic benefits, according to new figures.
A review released by economics consultancy London Economics has found that businesses that received EFG loans achieved higher average turnover growth (by 7.3% per year) and staff numbers (by 6.6% per year) compared to businesses which didn’t receive an EFG loan.
Over 25% of guaranteed loans in the scheme were issued to start-ups with less than 10 employees.
The programme – which launched in 2009 – provides accredited lenders with a government-backed guarantee for 75% of the loan value between £1,000 and £1.2m to SMEs.
John Carmody, director, guarantee and wholesale solutions at the British Business Bank, said: “We welcome today’s findings, particularly in light of our recent achievement in passing the £3bn EFG funding milestone.
“We are committed to ensuring that – as the UK’s national economic development bank – we are setting the standard for independent evaluation of our programmes.
“That’s why we’ve been pleased to work with London Economics to publish today’s findings, which show the real difference our national EFG programme is making to smaller businesses right across the UK, and to the wider economy.
“We look forward to working closely with our expanding network of accredited lenders to build the programme’s impact, helping smaller businesses get the vital finance they need.”
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