The UK government has launched the Growth Guarantee Scheme to empower small and medium-sized enterprises (SMEs) navigating an uncertain economic landscape. Replacing the Recovery Loan Scheme, this initiative is designed to unlock vital funding for growth, innovation, and resilience.
Delivered through the British Business Bank, the scheme offers government-backed loans of up to £2 million, helping businesses access finance they might otherwise struggle to secure. Whether you’re looking to invest in new equipment, expand your team, or strengthen cash flow, the Growth Guarantee Scheme provides a reliable route to the support you need.
Growth Guarantee Scheme supports term loans, overdrafts, asset finance, invoice finance and asset-based lending facilities.
Eligibility criteria include:
- Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group).
- UK-based: The borrower must be carrying out trading activity in the UK and, for most businesses, generating more than 50% of its income from trading activity.
- Viability test: The lender must consider that the borrower has a viable business proposition.
- Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings.
- Subsidy limits: Borrowers will need to provide written confirmation that receipt of the GGS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received
Over 11,000 businesses have already benefited, with 49 lenders participating nationwide. With the government guaranteeing 70% of the loan value, SMEs can approach financing with greater confidence, while lenders remain protected.
In a fast-changing world, this scheme represents a crucial partnership between government, financial institutions, and ambitious businesses ready to grow.
To read further see here Growth Guarantee Scheme (GGS) | British Business Bank
