| Aims |
To facilitate additional commercial lending to viable UK based SMEs with no or insufficient security to obtain a normal commercial loan facility. |
To facilitate additional short term export finance facilities to viable SMEs customers of the participating lenders that have no or insufficient security to obtain a normal export finance facility. |
| Availability |
Up to 31 March 2015, subject to demand |
From 28 April 2011. ExEFG will initially operate on a pilot basis and will be reviewed after six months |
| Loan size |
£1,000 to £1 million |
£25,001 to £1 million |
| Loan period |
3 months to 10 years (except where indicated below) |
Period of up to 24 months (available in increments of 3 months) |
| Types of Facilities available |
A. New term loans (unsecured)
B. New term loans (partially secured)
C. Refinancing of existing term loans
D. Conversion of part of all of an existing utilised overdraft
E. Invoice Finance Guarantee (Available for terms up to 3 years)
F. Overdraft Guarantee (Available for terms up to 2 years)
An EFG accredited lender may not necessarily offer all the eligible types of facilities if to do so would be incompatible with their normal commercial lending practices.
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Types of export finance products eligible to be guaranteed include: - Trade Loans (including Letters of Credit, Export Collections, pre-export finance / import credit facilities, investment term loans
- Export Bonds, Guarantees & Indemnities
- Other Contingent Liabilities (including FX hedging
- Any combination of the above via Trade Multi-Option Facility
N.B. Overdrafts, including trade related overdrafts are ineligible Purposes for which ExEFG may be utilised include: - Working capital to fund the purchase of materials etc in order to manufacture goods for sale internationally
- Depositing of perfmance bonds and similar instruments in order to satisfy requirements of an overseas customer
- Exporting of overseas sourced good produced to the design / specification of the business, even if those goods are shipped directly to a third country and do not originate from the UK or touch UK shores
- Importing of goods for subsequent re-export following value adding activity by the business in the UK
- Promotional and related activities focussed on increasing exports, such as an advertising campaign outside the UK, the establishment of a representative office outside the UK, the appointment of an overseas agent, or the setting up of a distribution network overseas.
An ExEFG accreditedlender may not necessarily offer all eligible types of facility, or provide facilities for all eligible purposes, if to do so would be incompatible with their normal export lending practices. |
| Turnover level |
Up to £41 million per annum |
Up to £25 million per annum |
| Premium |
2% per annum payable to BIS assessed and collected quarterly, in addition to any charges by the lender. |
3% per annum (pro-rata) payable to the scheme, collected upfront, in addition to any charges by the lender. |
| Guarantee rate |
75% - Taxpayers’ exposure is limited by a cap on defaults, in accordance with EU rules and to promote commercial rigour in lending decisions. |
60% - Taxpayers’ exposure is limited by a cap on defaults in order to promote commercial rigour in lending decisions and ensure that the scheme is self-financing and thus sustainable. |
| Personal Guarantees & Security |
Lenders are entitled to require personal guarantees and/or other partial security where available, with the exception of the principal private residence of a business owner, director or supporting guarantor. |
Lenders are entitled to require personal guarantees and/or other partial security where available, with the exception of the principal private residence of a business owner, director or supporting guarantor. |
| Main Sector Restrictions |
- Aid for Export, using EFG funding abroad, and the preferential use of domestic over imported goods
- Agriculture (including Horticulture)
- Banking, finance and associated services
- Business, employer & professional, religious and political membership organisations and trade unions
- Coal
- Extraterritorial organisations and bodies
- Formal Education
- Fisheries (including aquaculture)
- Forestry
- Insurance and associated services
- The Post Office (Royal Mail)
- Public administration, national defence and compulsory social security
- Transport
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There are no specific sector restrictions for ExEFG.
However, ExEFG may not be used to support the provision of finance to facilitate exports which are subject to Government export restrictions, such as sanctions and trade restrictions relating to specific countries.
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| Further information |
http://www.bis.gov.uk/policies/enterprise-and-business-support/access-to-finance/enterprise-finance-guarantee |
http://www.bis.gov.uk/policies/enterprise-and-business-support/access-to-finance/ex-efg |
