In his pre-budget report speech the Chancellor confirmed that he would be implementing the recommendations of Teresa Graham's report on the Small Loans Guarantee Scheme (SFLG).
In October, AccountingWEB reported the publication of the Graham Report, and described the SLGS as "a red-tape nightmare [that failed] to benefit the businesses it was intended to help."
The scheme was introduced to support lending to asset-poor businesses and entrepreneurs, making available loans of sums up to £100,000 for periods of up to 10 years. The SFLG guarantees 75% of the loan, in return for which the borrower pays the Department of Trade and Industry two% a year on the loan’s outstanding worth. Average loan size is now £69,000.
In her report, Baker Tilly consultant Teresa Graham, did not recommend scrapping the scheme completely, but set out a range of initiatives including:
- the expansion of levels of funding available to SMEs
- improving support to high-growth start-ups
- a radical reduction in red-tape.
At the time of the report's publication Graham told AccountingWEB, “What I’ve really done is to deregulate the system and taken out the paperwork and bureaucracy. It’s going to make it a lot easier for the banks to use, and to target at those that really need it most – start-ups, and young small businesses.”
The report can be downloaded from the Treasury website:
The report can be downloaded the Treasury website.
