In March 2009 Labour broadened the scope of the Enterprise Finance Guarantee (EFG) scheme to include loans to musicians and bands. Just one more last-ditch Labour stunt in their dying days, but it might have been made to work. So, how much has reached the music industry over the last few years? Almost nothing, according to a new survey by UK Music, given exclusively to The Observer ahead of the first meeting of the Creative Industries Council next week. The £2 billion fund has so far lent £1.4bn. A grand total of two payments have been made to musicians. The scheme…

“has approved just two music-sector loans in more than two years. One of the successful applicants received money only after making nine attempts.”

It’s said to be administered by the banks, so my speculation would be that a lot of the the bottleneck may be simply due to the bank managers’ unfamiliarity in dealing with bands and musicians?