Government initiatives to boost business growth
At Lloyds Bank Commercial Banking we are committed to making the UK economically stronger.
We understand that for the economy to grow, it needs strong and vibrant businesses and for the UK economy to prosper, it needs to look beyond national boundaries and export for success. With this objective, we provide access to government schemes which have been designed to provide vital support to businesses to help them grow or to develop their exports.
Funding for Lending
The Bank of England and HM Treasury launched the Funding for Lending scheme in July 2012 and we welcome this initiative to further encourage business growth through discounted lending.
The Business Growth Fund
The Business Growth Fund (BGF) provides long term capital for fast growing British businesses. Typically working with businesses turning over between £5M and £100M, BGF provides between £2M and £10M in return for a minority stake and a seat on the board.
Growth potential is the key criteria and investments can be used to fund a range of business plans, from working capital and capex to strategic acquisitions or a step change in sales and marketing.
BGF is governed by a Main Board and includes representatives of the five shareholding banks, including Lloyds Bank. Further information can be found on the BGF website.
ECGD Bond Support Scheme
Introduced early 2011, the Bond Support Scheme provides partial guarantees to participating banks under a master bond support agreement in respect of UK exports. Where a bank issues a contract bond (or procures its issue by an overseas bank) in respect of a UK export contract, ECGD will typically guarantee 50% of the value of the bond and up to 80% for advance payment and progress payment bonds.
ECGD Export Working Capital Scheme
The Export Working Capital Scheme has been designed to assist UK exporters to grow by gaining access to working capital finance (both pre and post-shipment) in respect of specific export contracts. The scheme is intended to help businesses that win new contracts overseas, in particular those of a higher value than usual to that business and the types of transaction supported under the scheme are likely to be structured working capital facilities.
Enterprise Finance Guarantee
The Enterprise Finance Guarantee (EFG) scheme enables businesses with a viable business proposal to borrow money despite having insufficient security.
If your business turnover is £41 million or less, you may be eligible for this funding. This scheme enables businesses that have borrowing requirements but lack available security to raise finance through Lloyds Bank with the Department for Business, Innovation and Skills (BIS) providing a partial guarantee for the loan. (your business remains liable for the full loan amount of the loan).
For more information on the Enterprise Finance Guarantee please visit the BIS website.
- Borrowing from £25,001 to £600,000 over one to ten years
- Loans from £600,001 to £1.2 million available over one to five years
- Choice of Variable or Fixed rates of interest
- Flexible draw down arrangements
- Capital repayment holidays available in certain circumstances
- Government premium of 2% a year on the outstanding balance for your loan applies