Government SME support scheme virtually unheard of |
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| Finance | |
| Written by Gary Howes | |
| Thursday, 10 December 2009 | |
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Poll suggests a lack of publicity is behind poor performance of Enterprise Finance Guarantee (EFG). The Enterprise Finance Guarantee (EFG) - the Government’s flagship initiative to help UK SMEs through the economic downturn and drag the country out of recession is a flop, according to research. According to Clifton Asset Management, a poll of more than 1,000 SME owner-managers about the Enterprise Finance Guarantee shows that 37% have not even heard of it.The poll forms part of the latest quarterly survey carried out by Clifton Asset Management (CAM). Of the 63 per cent who have heard of the EFG, a full 89 per cent said they saw “no benefit” in applying for its help. The figures were released as the Chancellor, Alistair Darling, announced an extension of the £1.3 billion scheme, which aims to stimulate bank lending by guaranteeing loans of up to £1 million, by at least another six months beyond its current March 2010 cut off date. According to the Treasury, the scheme has become a valued source of funding in the wake of the banking bailout and their subsequent reluctance to lend to small businesses. “Our figures tell a different story,” said Anthony Carty, director at CAM, which provides specialist financial and strategic advice to SMEs. “For a start, according to our research the number of SME owner-managers who are even aware of the scheme has dropped by five per cent from the last quarter’s survey. “And, of those who do know about the scheme and its aims, a massive 89 per cent have decided that there is no point in applying for it anyway. Speaking to the House of Lords last week, Business Secretary Lord Mandelson said 6,855 businesses had so far been offered loans totalling £692 million through the EFG. “These figures are extremely encouraging and the recently-announced extension to the scheme is to be welcomed,” said Mr Carty. “However from the respondents in our independently-conducted survey a paltry 2 per cent reported success in securing much-needed finance via the EFG, which tells me the scheme is not running as smoothly as the Government would like us to believe.”
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