The Loan Guarantee Scheme (LGS) was set up in 1981 to fill a perceived gap in the financing of smaller firms. It was designed specifically for firms who were constrained in their ability to borrow from banks by a lack of collateral. In 1996, loans issued under the scheme were at their highest level ever and rising at an increased rate. This paper uses previously unavailable data to give a broad feel for how borrowing patterns have changed over the period 1987–1995, the type and nature of borrowers using the scheme and the type of loans which they take out. The results give a number of important insights which merit further attention from academics and policy‐makers. Unfortunately, there is no information on the attitudes of banks towards the scheme, although anecdotal evidence suggests that they have adopted a more favourable, proactive stance towards the scheme in the last three years.
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1 January 1997
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Small Business and Enterprise Development
Review Article|
January 01 1997
NOTE AND SUMMARY STATISTICS FOR THE LOAN GUARANTEE SCHEME
Marc Cowling;
Marc Cowling
Centre for Small and Medium Sized Enterprises, Warwick Business School, Coventry, UK
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Peter Mitchell
Peter Mitchell
ESRC Macroeconomic Modelling Bureau, University of Warwick, Coventry, UK
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Publisher: Emerald Publishing
Online ISSN: 1099-1662
Print ISSN: 1361-5890
© MCB UP Limited
1997
Small Business and Enterprise Development (1997) 4 (1): 43–47.
Citation
Cowling M, Mitchell P (1997), "NOTE AND SUMMARY STATISTICS FOR THE LOAN GUARANTEE SCHEME". Small Business and Enterprise Development, Vol. 4 No. 1 pp. 43–47, doi: https://doi.org/10.1108/eb020979
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