The National Loan Guarantee Scheme was launched by the Government on 20 March 2012.
It will assist SMEs to obtain cheaper borrowing. UK businesses with a turnover of up to £50m will be eligible to benefit from the scheme. The interest rate margin will have a 1% subsidy for the fist 5 years of the commercial mortgage.
Participating Lenders – Aldermore, Barclays, Santander, Lloyds and Royal Bank of Scotland have signed up. HSBC have not signed up.
Barclays are offering the interest saving up front as a cash back when the loan is drawn down.
Greenfield Finance have just completed a loan of £650k for a private hospital with Barclays. The client was thrilled to receive £28,250 cash back at completion.
Barclays are certainly pro-actively pushing the scheme, with little focus by the other banks. Greenfield finance sees this as a great incentive for our clients and have already drawn down 2 facilities with 4 others already qualifying for the cash back. we plan to maximise the benefit for all qualifying loans.