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Lack of awareness leads to slow uptake of the government small business loan guarantee scheme.. Lack of awareness leads to slow uptake of the government small business loan guarantee scheme.. Lack of awareness leads to slow uptake of the government small business loan guarantee scheme.. Lack of awareness leads to slow uptake of the government small business loan guarantee scheme.. Lack of awareness leads to slow uptake of the government small business loan guarantee scheme.. Lack of awareness leads to slow uptake of the government small business loan guarantee scheme.. Lack of awareness leads to slow uptake of the government small business loan guarantee scheme.. Lack of awareness leads to slow uptake of the government small business loan guarantee scheme.. Lack of awareness leads to slow uptake of the government small business loan guarantee scheme.. Lack of awareness leads to slow uptake of the government small business loan guarantee scheme..
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Lack of awareness leads to slow uptake of the government small business loan guarantee scheme..

17/2/2009

The lack of knowledge in the small business community about how to access the Government's £1.3bn loan scheme, the Enterprise Finance Guarantee (EFG), is partly to blame for the slow uptake, according to LC Corporate Strategies, the turnaround arm of national corporate recovery firm Leonard Curtis. Stephen Fern, Director at LC Corporate Strategies, also believes low understanding and awareness within the banks is limiting its availability.

A survey by the Financial Times (FT 16th February 2009) indicated that approximately £12m of the Government's £1bn provision has been lent so far to small companies.

Commenting, Stephen Fern said: "The problem for owner managers is that they are not sure how to apply for these funds or how best to prepare their business case. We're talking to many business owners who have approached their bank to find that their client relationship manager does not know how to advise them.

"There is a willingness to help but the lack of awareness and understanding is proving a real barrier."

Fern continues: "Corporate turnaround advisors can help, as they are experienced in preparing a strong business case and applying for funding on behalf of distressed companies. They are also familiar with the bank small business finance teams and are well placed to identify the person responsible for the purse strings.

"It is crucial that communications around the Government's EFG scheme are improved if the SME community is to realise the full benefits."

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