Information on the Growth Guarantee Scheme.

The Growth Guarantee Scheme (GGS) is a UK government-backed programme that helps small and medium-sized businesses access funding for growth, investment, and working capital. Replacing the Recovery Loan Scheme, it runs from 1 July 2024 to 31 March 2026 and is delivered by the British Business Bank through accredited lenders.

The scheme provides loans, overdrafts, and asset or invoice finance facilities of up to £2 million (or £1 million for businesses in the Northern Ireland Protocol area). While the government offers a 70% guarantee to lenders, the borrower remains fully liable for the debt. This reduces lender risk and can make finance more accessible for viable businesses that may not have significant collateral or an extensive credit history.

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The Growth Guarantee Scheme supports a variety of finance options to meet different business needs, including:

  • Term Loans: Fixed amounts borrowed and repaid over a set period, ideal for investment in equipment, premises, or business expansion.

  • Overdrafts: Flexible short-term borrowing to manage day-to-day cash flow fluctuations.

  • Asset Finance: Financing secured against business assets like machinery or vehicles, helping to acquire or upgrade essential equipment.

  • Invoice Finance: Unlocks working capital by borrowing against unpaid customer invoices, improving cash flow without waiting for payments.

  • Asset-Based Lending: Loans secured against a broader range of assets, providing additional flexibility for growing businesses.

Each option is backed by a 70% government guarantee to the lender, making it easier for businesses to access the funding they need.

To qualify for finance under the Growth Guarantee Scheme, businesses must meet the following requirements:

  • UK-based business: The company must operate primarily in the UK, with at least 50% of its income generated from trading activities within the UK.

  • Turnover limit: The business group’s annual turnover must not exceed £45 million.

  • Business viability: The company should demonstrate a viable business model with a reasonable prospect of repayment.

  • Not in difficulty: Businesses already in insolvency, administration, or liquidation, or those considered to be in financial difficulty, are not eligible.

  • Exclusions: The scheme does not support banks, building societies, public sector bodies, insurers, reinsurers, or state-funded schools.

  • Subsidy control compliance: Borrowers must confirm that the loan does not cause them to exceed permitted public subsidy limits.

Meeting these criteria helps ensure the scheme supports businesses with genuine growth potential while managing risk for lenders.

Certain types of businesses and organizations are excluded from the Growth Guarantee Scheme, including:

  • Banks and building societies

  • Public sector bodies and government departments

  • State-funded schools and educational institutions

  • Insurance and reinsurance companies

  • Businesses already in financial distress, such as those in insolvency, administration, or liquidation

  • Companies not primarily trading in the UK (less than 50% of income from UK trading)

  • Businesses exceeding the turnover threshold of £45 million per year

  • Any business that would exceed public subsidy limits by taking the loan

These exclusions help maintain the scheme’s focus on viable, growth-oriented small and medium-sized enterprises.

Contact us for further details on how to apply.