In January the Government launched the scheme, which aims to help smaller businesses struggling to secure finance by giving them access to bank loans of up to £1m. However, IFA firms have been excluded from applying for these loans.
Aifa director general Chris Cummings says: “Clearly all SMEs are facing an exceptionally challenging economic climate and IFA firms are no exception to this.
“We believe the Government’s Enterprise Finance Guarantee can play an important and valuable role in assisting IFA firms at this time and we fail to see the rationale for excluding them from this much needed support. We are therefore calling on the Government to reconsider this exemption for financial services firms from the scheme.”