If you own a small business and are having problems obtaining finance from your bank then you may be eligible for the Enterprise finance guarantee scheme which is a government scheme aimed at helping small businesses to access funds to keep them afloat. Loans offered under the Enterprise finance guarantee scheme can vary from as little as £1,000 to a maximum of £1,000,000. For a small premium the Enterprise finance guarantee scheme guarantees the banks will receive up to 75% of the loan back. The Enterprise finance guarantee scheme covers various lending products such as new term loans that are between one and ten years in length, existing loan agreements where it is not possible to refinance the debt and converting used overdrafts into a loan freeing up capital in the overdraft to meet working capital requirements which is conditional on lender agreement. Enterprise finance guarantee scheme funds working capital and investments by growing or developing businesses. The capital and interest repayments on loans that qualify under the Enterprise finance guarantee scheme still need to be made regularly to your lender plus any chargeable arrangement fee. In addition to the standard loan fees, a premium is payable to BERR which is equivalent to two per cent per year on the outstanding balance of the loan which is assessed and collected quarterly in advance. The Government has confirmed that they will guarantee up to £1.3 billion of new bank lending under the Enterprise finance guarantee scheme. The Enterprise finance guarantee scheme is great news for small businesses who are struggling to access new finance meaning they can stay operating. Small businesses going into liquidation and banks stopping new lending could cause more harm to the economy which is why the Enterprise finance guarantee scheme is a good initiative to keep businesses trading and workers employed. If you are a small business registered in the UK and have an annual turnover of less than £25 million then you are eligible for the Enterprise finance guarantee scheme. Most loan business purposes and business sectors are accepted under the Enterprise finance guarantee scheme. It is advisable to seek professional advice from business plan consultants who have a better understanding of the Enterprise finance guarantee scheme. In addition to the Enterprise finance guarantee scheme, business plan consultants will be able to provide valuable advice on options for your business.