THE extension of the eligibility for the Small Firms Loan Guarantee Scheme (SFLGS) should mean that more SMEs would be able to access this relatively cheap form of finance for their business.
The pre-Budget report stated that, from next April, a whole new range of sectors will be eligible for the scheme, which should broaden its uptake.
The SFLGS was established in 1981 to fill a recognised gap in the market for small firms gaining access to finance. It assists viable small firms unable to raise conventional finance because of lack of security.
The scheme provides a guarantee, which encourages banks and other financial institutions to lend where they would normally be unable to do so.
