Enterprise Finance Guarantee

Product no longer available for new loans, as of 23rd March 2021. Enterprise Finance Guaranteed Loans support business customers where lack of security prevented borrowing.

At a glance

  • Originally available for sums between £25,001 and £1,200,0001

  • Flexible repayment terms between three months and ten years

  • Individually negotiated interest rates and fees

  • Variable or fixed rate loans

  • HSBC current account not required

Things to consider

  1. You are liable for repaying 100% of the loan and HSBC will always seek to recover the outstanding balance from you and any security taken under the loan. If HSBC cannot recover all funds, the Government provides a partial guarantee to HSBC to cover the lack of available security.
  2. An additional premium (equivalent to 2% per year) is payable once a quarter to the Department for Business, Innovation and Skills. This is in addition to any regular capital, interest, and arrangement fee payments that you make to HSBC.
  3. You are responsible for ensuring that you do not exceed the €200,0004 threshold for European Community State Aid, as a result of taking out an EFG.

Important information

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1 The £1,200,000 maximum applies to loans with a term of 5 years or less. The maximum loan amount for a term of 10 years is £600k.

2 Excluded sectors are Coal; Banking, Finance & Associated Services (except professional services); Formal Education (except vocational training); Insurance & Associated Services (except brokers & agents); Public Administration, National Defence & Compulsory Social Security.

3 €200,000 is the maximum amount of State Aid that any business may receive in a rolling 3 year period. Lower levels of State Aid apply to specific industries, for example agriculture, fisheries and road freight transport.

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