Growth Guarantee Scheme: The Complete Guide

Scheme update - 14 July 2026

At the Mansion House conference on 14 July 2026, the Chancellor announced three significant GGS changes: 10-year terms on loans up to £1.1m (previously 6 years), the turnover ceiling rising from £45m to £54m, and £2bn per year additional capacity. Implementation dates are to be confirmed by the British Business Bank. Full details

Access without hard security

The government guarantee means lenders can approve facilities without requiring property security. Businesses without assets to pledge can access meaningful loan amounts.

Loans up to £2 million

The £2 million maximum is significantly higher than most unsecured commercial loan limits. It enables serious investment in growth, capacity, and acquisitions.

Wide range of facility types

Term loans, revolving credit, asset finance, and invoice finance are all available under the scheme. This makes it possible to match the product to the borrowing purpose.

Covid loans and MFA: position varies

CBILS/CLBILS facilities taken before 30 June 2022 do not count toward your GGS MFA limit. Bounce Back Loans are different - per the BBB's own GGS FAQs they 'may' count, depending on how your lender notified you at the time. Neither prevents GGS access - the eligibility cutoff is 30 June 2024, covering all pre-GGS schemes. Confirm your MFA position with your lender.

Flexible repayment structure

Term loans up to 10 years on facilities to £1.1m (from Mansion House 2026 implementation), with some lenders offering initial capital repayment holidays. The structure can be tailored to your cash flow profile.

Principal private residence protected

The one hard security rule under the GGS is that lenders cannot take your home as security. Personal guarantees are otherwise at lender discretion and, where required, limited to the net outstanding balance.

Eligibility overview

The Growth Guarantee Scheme is open to a wide range of UK businesses, though meeting the scheme's minimum criteria does not guarantee approval from every accredited lender. The key criteria are turnover, financial health, and borrowing purpose. Individual lenders apply their own underwriting standards on top of the scheme's requirements.

Management accounts under 3 months old

Filed accounts that are more than 12 months old are not enough. Most lenders want management accounts that are current at the point of credit review. Plan to refresh them quarterly if you anticipate applying.

Bank statements reconciling to filed accounts

Lenders compare receipts and payments in your bank statements against your filed P&L. Unexplained discrepancies between the two are a significant red flag. Reconcile before submission.

3 to 6 months of clean account conduct

No unarranged overdraft usage, no returned direct debits, no irregular large unexplained transactions. Lenders review this as a proxy for management quality. Start preparing a quarter early if your conduct has been uneven.

Debt schedule matching the charges register

Lenders compare your stated existing debt against the charges listed at Companies House. Any mismatch raises serious concerns. Ensure every live charge is reflected in your debt schedule and every satisfied charge has been discharged (form MR04).

Companies House hygiene

Active status, up-to-date confirmation statement, complete PSC register, and all satisfied charges marked as satisfied. Lenders check Companies House in seconds. Outstanding filings or discrepancies create delays and can result in decline.

Forecasts with downside sensitivities

Lenders do not just want to see a base case. A forecast that includes a downside scenario (for example, a 20% revenue reduction) and shows the loan remains serviceable is a strong signal of management credibility. Without it, the base case alone is rarely sufficient.

Know your rights

GGS lenders must offer a commercial facility where better terms exist

Under British Business Bank rules, GGS-accredited lenders are required to consider whether a standard commercial facility (without the government guarantee) is available to you on terms that are no less favourable. If better commercial terms are available, they must offer those instead. This means applying through the GGS may sometimes result in a commercial offer rather than a guaranteed loan. That is a positive outcome: it means a competitive offer was available without the scheme.

Free resource

Lender-Readiness Pack

A step-by-step checklist and guidance covering everything a GGS credit officer needs to see in your application, written from the lender's perspective. Covers management accounts, bank conduct, Companies House hygiene, debt schedules, and forecast requirements.

GGS now offers up to 10-year terms

Following the Mansion House 2026 announcement, GGS term loans of up to £1.1 million can run for 10 years (from implementation, date TBC). Loans above £1.1 million remain on the existing 6-year maximum. The 10-year option reduces monthly repayments by 20 to 25% compared to the 6-year equivalent.

The £315,000 MFA cap explained

GGS loans count as Minimal Financial Assistance under UK Subsidy Control rules. The rolling 3-year cap is approximately £315,000. CBILS/CLBILS facilities taken before 30 June 2022 do not count toward this cap. Bounce Back Loans may or may not count depending on how your lender notified you at the time. Confirm your position before applying.

What is the Growth Guarantee Scheme?

The Growth Guarantee Scheme (GGS) is a UK government-backed lending scheme administered by the British Business Bank. It provides a 70% government guarantee to accredited lenders, enabling them to offer term loans, revolving credit, asset finance, and invoice finance to UK SMEs. The government guarantee is for the lender's benefit; the borrower is fully responsible for repaying the loan.

How much can I borrow under the Growth Guarantee Scheme?

You can borrow between £25,001 and £2,000,000 per business under the GGS. Term loans can run for up to 6 years. Revolving credit facilities and overdrafts are limited to 3 years. The amount you qualify for depends on your business's financial position and the lender's credit assessment.

Does having a Bounce Back Loan affect my GGS eligibility?

Having a BBL does not disqualify you from GGS - the BBB confirms businesses with prior BBLS facilities taken before 30 June 2024 are not prevented from accessing the scheme. The MFA question is separate: a BBL may count toward your cumulative subsidy allowance (a different rule, with a different date). Whether it does depends on whether your BBLS lender notified you at the time that the loan was provided under EU de minimis Regulations. CBILS facilities taken before 30 June 2022 do not count toward the MFA limit. Confirm your specific position with your lender before applying.

Do I need a personal guarantee for a GGS loan?

Personal guarantees under the Growth Guarantee Scheme are at each accredited lender's discretion. Lenders decide whether to require a guarantee and at what level as part of their own underwriting process. The one hard rule that applies to all GGS facilities is that a borrower's principal private residence cannot be used as security. Where a personal guarantee is required, it is limited to the net outstanding balance of the facility.

What is the Minimal Financial Assistance (MFA) cap?

The GGS counts as Minimal Financial Assistance under UK Subsidy Control rules. The MFA threshold is approximately £315,000 over three rolling fiscal years. Businesses must declare any previous MFA-qualifying support when applying. CBILS/CLBILS facilities taken before 30 June 2022 generally do not count. BBL treatment is conditional - check with your lender. RLS and GGS facilities taken after 1 August 2022 do count toward the cap.

Can I use a GGS loan to refinance existing debt?

Refinancing of existing commercial facilities is generally permitted under the Growth Guarantee Scheme. Verify the specific terms with your chosen lender and the current British Business Bank lender manual, as restrictions may apply in certain circumstances.

We assess whether the GGS is right for you

The Growth Guarantee Scheme is a strong option for many businesses, but it is not always the best option. As an independent FCA authorised broker, Spark Finance will assess your full funding picture, including asset finance, invoice finance, commercial mortgages, and unsecured lending, before recommending the most suitable route.

We place GGS applications with multiple accredited lenders and we know which lenders are most likely to approve your profile before you apply, reducing the risk of unnecessary declined applications and multiple credit searches.