Enterprise Finance Guarantee - can it be used for property purchase?

tbumps

Hi

Anyone following my many recent threads will know that I'm trying to get a commercial mortgage. One broker just e-mailed to say that the extension of the EFG scheme may help us. Does anyone know whether such a loan could be used for a property purchase? I know that rates are higher but still lessthan the 9.9 - 4.9% we've been quoted on a commercial mortgage, I think!

TB

stephenni1971

On the basis of the information in your previous posts, I don't think there is any way you would ever qualify for the EFG scheme.

Your 'broker' was I believe, giving you false hope -

Just my opinion though....

tbumps

That's interesting, why don't you think we'd qualify? I've been reading up on it & can't see anything that would exclude us. I just can't work out whether a loan can be used for a property purchase....

stephenni1971

why don't you think we'd qualify?

What's your turnover?

How many staff do you employ?

Do you undertake any R & D?

Are you an exporter?

What assets do you have?

tbumps

"On the basis of the information in your previous posts, I don't think there is any way you would ever qualify for the EFG scheme."

Just wondering what I had posted about that made you conclude that I wouldn't qualify.

If anyone does know about whether the loan can be used to purchase property, I'd be grateful.

stephenni1971

Firstly, the scheme does not provide loans.

It underwrites a loan made by a conventional bank, and you still have to satisfy that bank that your business is suitable for a conventional loan. The scheme exists to aid a business who may fall at the edge of a lenders criteria. The govt take a charge of 2% of the loan for the guarantee.

You want to consolidate your business and have a shop/flat. In my OPINION, involving your business and personal finances in this way and having a commercial and residential aspect to your investment would exclude you from the scheme.