SME’s never even heard of Enterprise Finance Guarantee

A new poll suggests that Enterprise Finance Guarantee or EFG may perform poorly due to a lack of publicity. The EFG is the new initiative by the Government that was created to help SMEs get through the economic recession in the UK.  However, research denotes that the effort was a flop.

A poll conducted by Clifton Asset Management showed that out of the 1,000 SMEs polled; only about 37% of the managers had heard of the EFG. Of the 63% of managers who had heard about the effort, 89% stated that it would not help them to apply for help.

The new figures from the study were announced directly after Alistair Darling the Chancellor stated that the scheme worth £1.3b would be extended to help stimulate lending by banks for loans that are under £1m.  It has been extended past its March 2010 by six months.

The Treasury stated that the scheme was an important funding source for businesses after the bailout of the banking industry.

Director at CAM, Anthony Carty, stated that their figures show that in just a quarter the amount of SME managers who knew about the scheme reduced by a 5% margin.

On the other hand, Business Secretary Lord Mandelson told the House of Lords that so far the EFG has been able to secure 6,855 SMEs with loans that amount to about £692m.

Carty stated that while the figures are encouraging, the study shows that the scheme is still not as effective as the Government claims.