MIA members should be aware that we have agreed with BERR that UK motorsport businesses seeking Enterprise Finance Guarantees (EFG) ARE included under the new changes - the sector qualifies under "automotive" and this should be used in any application.
Please also note the 'cash flow' assistance available from HMRC on tax payments.
You may find the following of use:
1. A leaflet on the EFG providing detailed information on how to apply for a loan under this scheme.
4. A recent BERR press release reporting on the take up of the Government's EFG
"Eligibility Issues" were raised at the recent Small Business Finance Forum meeting:
The issue raised was that accredited lenders are requiring small businesses to sign personal guarantees of up to 100% of loans made under the scheme, even though the government is guaranteeing 75% of the loan. Confusion appears to continue over the nature of Government guarantees in this regard.
BERR said: "Banks are allowed to ask for unsupported personal guarantees [under the Enterprise Finance Guarantee Scheme] and that is on the whole loan facility. The loans are given out by the banks, not by the government and are done so under their commercial lending criteria. When the government put something like this in place, we have a certain responsibility to look after businesses, but must also to look after the taxpayer."
The HMRC Business Payments Support Service Update:
The HMRC Business Payment Support Service offers help to businesses finding it difficult to make tax payments on time, including corporation tax, VAT, PAYE, income tax and national insurance contributions. Such businesses experiencing temporary financial difficulties, needing more time to pay an outstanding tax bill or a bill due soon, are able to call a dedicated phone service to agree arrangements tailored to need.
The scheme has been helpful to many businesses, but some MIA members are disappointed it is only available to those businesses already in financial difficulty, but not those who would be if they paid their taxes on time.
Business Support Simplification Programme (BSSP) Update:
DBERR announced that the rollout of Solutions for Business, its streamlined portfolio of business support products, has reduced over 3,000 schemes to an opening 30. All Government help for Business uses an easily identifiable banner and can be accessed mainly via Business Link.
To conclude the rollout, a further nine products have now joined the portfolio. Train to Gain and Business Link brokers will now come together as a new service, under the Business Link brand, to offer advice on skills. This further reinforces Business Link's role as the main route to government support.
