About 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 facilities, asset finance, and invoice finance to small and medium-sized UK businesses that might otherwise struggle to access commercial lending.
The scheme is not a direct government loan. Businesses borrow from accredited private sector lenders who use the government guarantee to underpin the facility. The borrower is still responsible for repaying the loan in full.
- Government provides a 70% guarantee to the lender, not to the borrower
- Maximum facility: £2 million per business
- Minimum facility: £25,001
- Term loans: up to 6 years
- Revolving credit and overdrafts: up to 3 years
- Available to businesses with turnover up to £45 million
- Administered by the British Business Bank through accredited lenders
Eligibility and application
The scheme is available to most UK businesses with turnover below £45 million, provided they are not in financial difficulty and can demonstrate a viable borrowing purpose. The application is made through an accredited lender, not directly through the British Business Bank.
Frequently Asked Questions
What is the maximum amount I can borrow under the Growth Guarantee Scheme?
The maximum facility size under the GGS is £2 million per borrower (or business group). The minimum is £25,001. The amount you can actually access will depend on your business's financial position, trading history, and the lender's credit assessment.
What can GGS funds be used for?
GGS funds can be used for most legitimate business purposes, including working capital, investment in equipment or machinery, property improvements, business acquisition, and growth capital. Refinancing of existing debt (including Bounce Back Loans, CBILS, RLS, and commercial facilities) is also permitted where total financing needs exceed the scheme minimum. Funds cannot be used for personal purposes.
Is the Growth Guarantee Scheme still open?
The GGS was designed to run until 31 March 2026. Any extension or successor scheme would be announced through the British Business Bank. Speak to Spark Finance for the most current information on available government-backed and commercial lending options.
Does the government guarantee mean I don't have to repay the loan?
No. The guarantee is for the benefit of the lender, not the borrower. You are fully responsible for repaying the loan. If you default, the lender can claim on the government guarantee to recover 70% of the outstanding balance, but they can also pursue you and any guarantors for the full amount.
How do I find an accredited GGS lender?
The British Business Bank publishes a list of accredited lenders on its website. Alternatively, working through a broker like Spark Finance gives you access to multiple accredited lenders simultaneously, with expert guidance on which lender is most likely to approve your specific application.
What is the difference between the GGS and the Recovery Loan Scheme?
The GGS is the direct successor to the Recovery Loan Scheme (RLS), which closed in June 2024. The core structure is similar: both involve a 70% government guarantee, both are delivered through accredited lenders, and both are administered by the British Business Bank. The GGS has updated eligibility criteria and MFA rules reflecting the post-pandemic economic context.
Do I need to show the loan will create jobs?
No. Unlike some regional funding schemes, the GGS does not require borrowers to demonstrate job creation or specific economic outcomes. The borrowing purpose must be consistent with the scheme's parameters, but there is no social impact test.
Can I access the GGS through my existing bank?
Yes, if your bank is an accredited GGS lender. Many major banks including HSBC, Barclays, Lloyds, and NatWest are accredited. However, your bank's GGS criteria may be more conservative than specialist lenders, and you may get better terms or a higher chance of approval through a different accredited provider.
How long does it take to receive GGS funding?
From application submission to drawdown, most GGS facilities take 2 to 4 weeks for straightforward cases. More complex applications involving detailed due diligence or property security can take 4 to 8 weeks. Having all required documents ready before applying is the most effective way to speed up the process.
Can charities or social enterprises access the Growth Guarantee Scheme?
Charities and social enterprises can access the GGS in principle, provided they meet the eligibility criteria including the financial difficulty test and MFA requirements. However, some lenders may have restrictions on lending to charities or entities without commercial objectives. A specialist broker can identify the most appropriate lenders.