More small business loans opened up through EFG

Barclays has made another £88 million of business loans available to small firms through the government's Enterprise Finance Guarantee (EFG), introduced during the downturn to help companies struggling to raise funds.

Lord Davies - the trade, investment and small business minister - says the EFG has already helped "thousands of viable businesses" access the cash they need to withstand the recession and prepare for recovery.

"Following its recent extension, it will continue to play a vital role in encouraging enterprise and investment and driving productivity and growth throughout the UK economy," he adds.

Barclays, which has made loans worth over £150 million available in the last year, says it's been able to assist more than 1,650 businesses through the scheme.

"Enterprise Finance Guarantee covers a key gap in the market - companies that are viable, notes Steve Cooper from Barclays Local Business.

Through the business lending scheme, the government guarantees a proportion of the sum if the customer is unable to repay the debt. It was launched for businesses that operate in the UK and have sales turnover of up to £25 million.