The Enterprise Finance Guarantee is available to viable businesses struggling to access finance, due to the economic downturn, from 14 January 2009 until 31 March 2010.
The Working Capital Scheme is not available directly to businesses. The scheme enables participating banks to increase the amount of working capital they can make available to businesses.
By guaranteeing portfolios of working capital facilities, this will release regulatory capital held by the banks against these portfolios. The banks have agreed they will make commitments to re-deploy this capital in order to increase all types of lending to small and medium-sized enterprises (SMEs) and mid-sized corporates above their current base line. The scheme runs until 31 March 2011.
[holding answer 25 February 2009]: The Government announced Solutions for Business, their streamlined portfolio of business support products, in October 2008 with 30 schemes to be in place by March 2009, all other schemes will have closed, or been given notice to close by March 2010. Business Link will be the main access channel to this support.
Solutions for Business is flexible to changing economic circumstances and business need. The Government have committed to keep the streamlined portfolio at less than 100 products in total, covering all of the £2.5 billion spend on business support announced at the beginning of the programme.
The Impact Assessment published December 2007 estimated the cost of the programme to be £5 million, of which £l million was estimated for 2008-09. These costs represent the time/opportunity costs of staff implementing the change programme. Costs in the future will change through transition, however, BERR does not account for other departmental and delivery partner costs.
The information is as follows:
2004-05 2005-06 2006-07 2007-08 North West 745 605 310 326 North East 236 229 125 110 Yorkshire and Humber 565 494 217 186 West Midlands 636 535 244 231 East Midlands 11,162 415 168 176 East of England 1— 510 223 223 London & 12,007 824 467 370 South East 1— 986 377 321 South West 748 578 212 212 Scotland 643 476 235 259 Wales 344 251 100 208 Northern Ireland 44 53 24 27 Total 7,130 5,956 2,702 2,649
£million 2004-05 2005-06 2006-07 2007-08 North West 54.415 45.220 24.161 27.170 North East 15.334 17.097 7.925 8.350 Yorkshire & Humber 37.364 35.875 17.047 15.170 West Midlands 39.714 36.195 18.833 16.777 East Midlands 178.398 28.917 12.364 13.457 East of England 1— 33.598 15.848 16.776 London 1141.399 58.050 37.309 32.160 South East 1— 70.557 29.309 25.328 South West 46.313 40.107 17.047 17.047 Scotland 42.748 34.898 20.303 22.333 Wales 21.607 16.072 8.585 8.961 Northern Ireland 4.032 5.479 3.023 2.806 Total 481.324 422.065 211.754 206.335 1 Represents a brace.
The number and value of loans for the above was extracted from the respective Industrial Development Act reports. The Small Firms Loan Guarantee (SFLG) Annual Report 2007-08 has updated figures for the totals of number and value of loans for 2006-07 and 2007-08. However, these data are not produced by county.
Since the Graham Review, lenders record a guaranteed loan on a web portal after the money has been drawn down by the business, however, occasionally later updating occurs which for 2006-07 and 2007-08 is better reflected in the SFLG Annual Report 2007-08 as it incorporates more recent extracts from the web portal and thus more fully updated totals for these years.
Direct year-on-year comparisons would not be appropriate because of changes to the operation and delivery of SFLG during this period, including as a result of the implementation of the Graham Review changes in 2005, which created distinct versions of the scheme.