§ Mr. RendelTo ask the President of the Board of 'Trade what differentiation in terms of the loan guarantee scheme exists between applications from firms in inner-city areas and from firms in other areas.
§ Mr. McLoughlin.[holding answer 18 February 1994]: Some eligible small firms with trading addresses within inner city task force or successful city challenge areas receive more favourable terms under the small firms loan guarantee scheme. The comparable terms are:
- Inner city task force and successful city challenge areas
- 85 per cent. guarantee on all loans;
320 - 0.5 per cent a year premium on the outstanding loan paid by borrower;
- No minimum loan size.
- National
- 85 per cent. guarantee on loans to businesses that have been trading for at least two years immediately prior to the loan application;
- 70 per cent. guarantee on other loans;
- 1.5 per cent. a year premium on the outstanding loan paid by the borrower for variable interest rate loans;
- 0.5 per cent. a year premium on the outstanding loan paid by the borrower for fixed interest rate loans;
- Minimum loan size of £5,000.