BUSINESSES are struggling to access funding from the Government’s guaranteed lending initiative, according to York accountants Garbutt & Elliott.

It is thought only one Yorkshire business has successfully applied for funding under the Enterprise Finance Guarantee, which was introduced in January by the Business Secretary Lord Mandelson to stimulate bank lending.

When launching the package, Lord Mandelson, said: “We know that some companies are struggling to secure the finance they need, not because of any failure in their business but due to the tougher credit conditions.

“That is why we have designed a package of measures addressing different forms of credit and providing real help for businesses.”

In a bid to help Yorkshire businesses take advantage of the scheme, Garbutt & Elliott is introducing a series of seminars and workshops, called Access To Finance, which will be held over the coming months.

Jeremy Oliver, director at Garbutt & Elliott, said: “We are inviting businesses to contact us for further information on their funding options and/or to attend one of our seminars and workshops. It appears there is some confusion about how to access this Government funding and we are here to help.”

He said: “Once we have gauged the level of interest in these seminars, we will be announcing specific dates.”

The Enterprise Finance Guarantee is aimed at funding working capital and investment for businesses seeking to grow or develop.

Mr Oliver said: “Delivery of the Enterprise Finance Guarantee, including the decision on whether or not it is appropriate to use it in connection with any specific lending transaction, is fully delegated to the participating lenders, who are all the major banks. There is no automatic entitlement to receive a guaranteed loan and nor is there any pre-qualification process for it.”

He added: “Up to £1.3 billion of new bank lending will be guaranteed by the Government. Eligible businesses are able to borrow between £1,000 and £1 million when this would not otherwise have been possible, and small businesses in the UK with an annual turnover of up to £25 million are eligible”.

The guarantee, available through high street banks, will apply to loans and can also be used to convert existing overdrafts into loans to enable businesses to free up their current overdraft facilities to meet working capital demands.

Mr Oliver said: “This was a very welcome initiative from the Government in these difficult economic times when many small businesses are struggling. But, for whatever reason, Yorkshire companies are not taking advantage of it. We hope our seminars will redress this situation and access funding for many companies who need it”.

For further information, phone Mr Oliver on 01904 464100 or email joliver@garbutt-elliott.co.uk