Economic Evaluation of the Enterprise Finance Guarantee (EFG) Scheme

Abstract

This is the first full evaluation of the Enterprise Finance Guarantee (EFG) scheme which was introduced in January 2009 to provide additional lending to businesses having difficulties raising finance during the credit crunch.11 The evaluation builds on the earlier analysis undertaken by the authors in the EFG Early Assessment.12 The early stage assessment provided an early indication of the likely benefits of the scheme, although these results were only based on the first few months of operation in 2009. Accordingly impacts were not fully evident across this period and the data was not subjected to econometric analysis against comparison groups, nor was any Cost Benefit Analysis (CBA) undertaken to assess overall cost effectiveness. This evaluation report more fully considers the impact of the loan on the whole 2009 cohort of EFG users by analysing the results of a telephone survey of a sample of beneficiaries. This survey tracked business performance for the period 2009-2012 and provides estimates on which to assess these economic impacts against a comparison group of non-user businesses.