Small Firms Loan Guarantee

The UK Government could
help secure your business loan

Security may be required.

Your home or property may be repossessed if you do not
keep up repayments on your mortgage

Do you have a viable business proposition and need working capital or money to fund capital expenditure?

It can often be frustrating trying to get your plans off the ground or expand your business, especially if you do not have any assets to offer as security for a conventional loan.

That's where The Royal Bank of Scotland and the UK Government can help.

How the Small Firms Loan Guarantee works

Under this scheme, the UK Department for Business Enterprise & Regulatory Reform (BERR), formerly the DTI, will guarantee 75% of your loan - which means you don't need a large amount of security to back your borrowing.

What's more, you will enjoy many of the benefits available with our other loans.

Small Firms Loan Guarantee benefits

  • Variable or fixed interest rates - giving you the choice you need
  • £250,000 maximum loan - the minimum amount is £5,000
  • Two year minimum term - and a maximum term of 10 years
  • Drawdown options to suit your business - you can receive your funds in stages, to suit the cycles of your business
  • Payment holidays - you can ask for a capital repayment holiday of up to three years. During the holiday period, interest will continue to accrue and be applied quarterly. You will be required to lodge funds to meet interest applications during the agreed capital holiday period
  • With effect from 1 April 2008, businesses of any age may apply for support under the scheme

If you qualify for the BERR guarantee and take a loan under the Small Firms Loan Guarantee scheme, you need to pay a premium to BERR. Paid quarterly to aid cashflow, the premium is based on 2% per annum on the reducing loan balance.

Protecting your loan is optional

Protecting your loan could cost less than you might think. For an additional amount each month, Business Loanguard could protect your loan repayments and cover you for:

  • Accident and sickness
    If you have been unable to work for 30 consecutive days, your monthly repayments could be covered by RBS for a period of up to 60 months
  • Death
    If you should die during the period of the insurance, the outstanding balance (less any arrears and related interest and costs) at the date of your death could be cleared

    Cover is available for permanent UK residents aged 18 to 65 and working more than 16 hours a week.

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