Core eligibility requirements
To qualify for a Growth Guarantee Scheme loan, your business must be UK-based and carrying out trading activity in the UK. You must be able to demonstrate that your business is viable and that the borrowing is for a legitimate business purpose. Lenders are required to confirm that you were not already in financial difficulty at the time of application.
The scheme is available to businesses across most sectors. A small number of activities are excluded by British Business Bank rules, including banks and building societies, insurance companies, and businesses primarily involved in financial activities. Agricultural businesses may also face restrictions depending on their MFA position.
- UK-based business carrying out trading activity in the UK
- Annual turnover of up to £45 million
- Business must be viable with a sound borrowing purpose
- Business must not be in financial difficulty (as defined under UK Subsidy Control rules)
- Most sectors eligible, with limited exclusions for financial services and insurance
Turnover and size criteria
The Growth Guarantee Scheme is targeted at small and medium-sized businesses. To access the scheme, your business must have annual turnover of up to £45 million. There is no minimum turnover threshold, which means early-stage and micro-businesses can apply provided they meet the other criteria.
Unlike some earlier government-backed schemes, there is no requirement to demonstrate that your business has been adversely affected by a specific economic event. The scheme is intended to support businesses that need access to finance for genuine growth and working capital purposes.
Trading history
Lenders will assess your trading history as part of the underwriting process. While the scheme itself does not specify a minimum trading period, most accredited lenders will want to see at least 12 to 24 months of trading history. Some specialist lenders may consider businesses with shorter track records, particularly where the business plan and management team are strong.
Startups with limited trading history may find it harder to access GGS funding compared to established businesses. If your business is less than 12 months old, it is worth speaking to a broker who can identify lenders with more flexible criteria before making a formal application.
Personal guarantee and security rules
Personal guarantees under the Growth Guarantee Scheme are at each accredited lender's discretion. Lenders decide whether to require a personal guarantee, and at what level, as part of their own credit underwriting process. There is no scheme-wide prohibition on personal guarantees at any particular facility size.
The one hard rule that applies to all GGS facilities regardless of size is that a borrower's principal private residence (PPR) cannot be taken as security. Where a personal guarantee is required by the lender, it is limited to the net outstanding balance of the facility.
- Personal guarantees are at each lender's discretion - no scheme-wide prohibition by facility size
- Principal private residences (PPR) cannot be used as security - this is a hard rule for all GGS facilities
- Where a PG is required, it is limited to the net outstanding balance of the facility
- Security over business assets and debentures are permitted at lender's discretion
- Spousal or partner guarantees may be accepted where the guarantor has a direct interest in the business
Financial difficulty test
Lenders must confirm that your business was not in financial difficulty at the point of application. Financial difficulty under UK Subsidy Control rules includes situations such as more than half of share capital being lost through accumulated losses, or a business that is insolvent.
Being in financial difficulty does not mean experiencing cash flow challenges or a difficult trading period. Most businesses going through a tough patch will not automatically fail this test. If you are unsure whether your business qualifies, a broker can help you assess your position before you approach a lender.
Eligibility
- UK-based business with turnover up to £45 million (rising to £54m from implementation of announced Mansion House 2026 changes)
- Business must be viable with a credible plan for the borrowing
- Business must not be in financial difficulty under UK Subsidy Control rules
- Most sectors eligible (financial services and insurance largely excluded)
- Personal guarantees at lender's discretion; principal private residence cannot be used as security
- Must comply with Minimal Financial Assistance limits (£315,000 over 3 fiscal years)
Frequently Asked Questions
Can a startup apply for the Growth Guarantee Scheme?
The scheme does not specify a minimum trading period, but most accredited lenders require at least 12 to 24 months of trading history in practice. Startups with limited trading records may have more success with specialist lenders or through a broker who can match them to more flexible underwriters.
Can sole traders access the Growth Guarantee Scheme?
Yes. The scheme is open to sole traders, partnerships, limited companies, and LLPs. Some lenders may have their own restrictions on legal structure, but the scheme itself does not exclude sole traders.
Does having a Bounce Back Loan affect my GGS eligibility?
Having a Bounce Back Loan does not disqualify you from the Growth Guarantee Scheme. However, a BBL may count toward your cumulative subsidy allowance when calculating your maximum GGS amount - it depends on whether your BBLS lender informed you at the time that your loan was provided under the EU de minimis Regulations. Check with your lender to confirm your position before applying.
What does 'financial difficulty' mean in the context of GGS eligibility?
Under UK Subsidy Control rules, a business is in financial difficulty if it has lost more than half of its share capital through accumulated losses, is subject to collective insolvency proceedings, or meets certain debt-to-equity ratio thresholds. A difficult trading period or temporary cash flow challenge does not automatically put you in financial difficulty.
Is my business too large for the Growth Guarantee Scheme?
If your annual turnover exceeds £45 million you are outside the scheme's eligibility parameters. Larger businesses have alternative options including HSBC's commercial lending, challenger bank term loans, private debt, and institutional lending. Spark Finance can help identify suitable options.