The UK government's Enterprise Finance Guarantee.
The loan guarantee scheme guarantees the lender for up to 75% of advances under a loan to or invoice financing arrangement for smaller businesses. The advance remains an obligation of the borrower to the lender. The purpose of the scheme is to facilitate lending to viable businesses that have been turned down for a normal commercial loan due to a lack of security or a proven track record.
EFG is managed by British Business Financial Services, a wholly-owned subsidiary of British Business Bank plc, but remains on the balance sheet of the Department for Business, Energy & Industrial Strategy (BEIS). The government provides a guarantee to the lender, but has no role in the decision making process and is not party to the loan agreement.