05 February 2007
Small Jersey businesses with big ideas will receive some welcome news, with the launch of the Economic Development Department’s small firms’ loan guarantee scheme.
The scheme has been set up by Economic Development (ED) and is aimed to encourage diversification in Jersey’s economy and broaden the range of job opportunities for local people.
The States Economic Growth Plan proposed a multi faceted approach to growing Jersey’s economy. One of these is to develop a new approach to enterprise that will remove some of the identified barriers to entrepreneurial activity.
A survey of entrepreneurial activity showed the biggest barrier to growth and diversification was access to business finance. The Economic Growth Plan recommended that it could be improved by introducing a small firms’ loan guarantee (SFLG) scheme.
The States will guarantee loans made by banks to small firms, up to a maximum of 75% of the loan.
ED Minister Senator Philip Ozouf said: ‘The concept of government guaranteeing the working capital of a private enterprise is new to Jersey but well established in many other countries. I believe this will be a shot in the arm for the economy and will help boost the confidence of both our established and emerging business sectors. I know from discussions with officers in the department that several individuals are just waiting for the scheme to be launched so they can develop their business ideas. I am determined that the scheme will be used to support imagination, determination and drive.”
Update: September 2012
The Small Firms Loan Guarantee Scheme is no longer in operation.
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