Loans similiar to the US small business association (SBA) program in the UK

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October 30, 2020

by a searcher from London Business School in London, UK

For those unfamiliar, in the United States, there is a loan programme backed by the government that can be used to acquire a business. It is quite an attractive product, the main downside is it requires a personal guarantee.

Is anyone in the UK familiar with a similar product? I know there are the British Growth Fund and other UK government-backed institutions and programmes. But these programmes do not seem to allow for purchasing a business.

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Reply by a searcher
from London Business School in London, UK
my 2p, from what I have seen there aren't any. You maybe able to try some cashflow lenders, depending on the business however imagine it depends on the cashflow and whether it is back contractually. I wouldn't worry about the PG's, you can take out insurance against that. However unfortunately lending in the UK is geared towards freehold asset based purchases, and leasehold (asset light) will require all/majority of your money...
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Reply by a searcher
from London Business School in London, UK
Dear All,

I found a list of 173 UK government programmes that could be of interest. Many are regional or not suitable to acquisitions. But it hopefully is a start. This list is maintained on gov.uk at the following link

https://www.gov.uk/business-finance-support

Best,
Jim
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