SMALL businesses in Merseyside applying for the Government’s Enterprise Finance Guarantee (EFG) scheme are being urged to “do their homework” in the face of stiff assessment criteria.
The Government launched the EFG scheme in January to help recession-stricken small firms. Under the scheme, the loan still comes from the bank, but the Government underwrites 75% of it.
But Merseyside law firm Mace & Jones said banks are applying rigorous assessments to EFG applications and remain cautious about lending.
Mace & Jones corporate partner Mike Yardley said businesses can easily fail to win approval.
