Figures disclosed to PrintWeek by the department for Business Innovation and Skills under the Freedom of Information Act, show that since its launch in January, 54 print businesses have drawn loans totalling £5.8m.
In total, 84 eligible applications were made under the scheme for loans totalling £9.7m. Of those applications, 71 firms were offered loans guaranteed by the scheme, 17 companies did not pursue their applications.
Commenting on the figures, Mark Nelson of Compass Business Finance said: "This is fantastic for the economy, and print specifically. As long as this money is being advanced in addition to the ‘normal finance products' then this is a step in the right direction.
"I now have a couple of customers that have been through this process. One of these customers has used the funds to place a deposit on a new machine, which otherwise would not have been bought. This shows how one step forward can start a cycle that eventually boosts the economy as a whole."
However, Nelson said the application process was "longwinded", a view supported by Simon France, head of sales for HSBC Equipment Finance's print division.
France said that the criteria requiring businesses to have no security to offer, but still have an attractive proposition the bank can back meant that "very few businesses" can meet the criteria.
The EFG was launched by the government in January, replacing the Small Firms Loan Guarantee (SFLG) scheme. The £1.3bn EFG scheme was intended to encourage banks to lend to small businesses.
Under the EFG, the government will, for a fee, guarantee a percentage of bank lending to UK firms with a turnover of up to £25m seeking loans of up to £1m.
It had come under fire from industry experts for the fact that neither the government nor the banks were taking risks due to the high levels of personal guarantees required by borrowers.
However, the scheme appears to be gathering pace with the figures released to PrintWeek showing that a total of £706m of eligible applications from 6,217 UK firms in all sectors had been granted compared with 2,360 firms being guaranteed loans worth £177.8m on 3 April.
ENTERPRISE FINANCE SCHEME
? Launched 14 January
? Replaced the Small Firms Loan Guarantee
? Premium paid to the BERR in return for guarantee to lender
? Loan values range from £1,000 to £1m
? Terms of three to 10 years
