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Norton Motorcycles is preparing to double its production levels and staff numbers after securing the first loan under the government's Exports Enterprise Finance Guarantee (ExEFG) scheme. The Donington Park-based motorbike manufacturer has received a £625,000 loan arrangement from Santander.

Business secretary Vince Cable announced the inaugural lending arrangement during a visit to the manufacturer's Derbyshire base.

ExEFG is one of four trade finance schemes established by the government as part of the Trade White Paper, part of its Plan for Growth.

Barclays, HSBC, Lloyds & Bank of Scotland, Royal Bank of Scotland, NatWest and Santander have agreed to participate in the ExEFG scheme.

The Norton funding will support its plans to increase production to 1,000 motorcycles a year. It will also benefit Norton’s supply chain, of which 80 per cent is British.

Cable said: "Trade and investment are essential to driving our economy and encouraging small businesses to export more is at the heart of that.

"This iconic company, whose brand once inspired a generation of motor cycle enthusiasts, is a prime example of British business innovation. I hope that many more companies are inspired by what Norton is going to achieve through this funding."

Norton also plans to double its workforce to 60 full time staff by 2012 and "significantly" extend its factory.

Stuart Garner, chief executive of Norton Motorcycles (UK), said: "The ExEFG scheme has enabled our business to grow rapidly to meet the demands of an ever increasing international customer base and I am thrilled we now have the opportunity to take on more staff to join our team.

"This scheme will not only benefit Norton and the local area, by supporting enterprising firms across the country it will help drive forward the British economy."

Steve Pateman, head of Santander Corporate, commercial and business banking, added: "Schemes like this are invaluable for being able to get smaller exporters at the margins of commercial lending criteria, like Norton, the finance they need if they are to drive international trade and regional economic growth."

Vince Cable visited Norton Motorcycles as part of a visit to Derby to meet local councillors, Colin Walton, chairman of Bombardier Transportation UK and the Economic Task Force.