What changed at Mansion House 2026
Prior to the Mansion House announcement, GGS term loans were capped at 6 years. From implementation (date to be confirmed by the British Business Bank), term loans of up to £1.1 million will be eligible for 10-year repayment periods under the scheme guarantee. Loans above £1.1 million remain subject to the existing 6-year maximum.
Two further changes accompany the term extension. The turnover eligibility ceiling rises from £45 million to £54 million, bringing mid-market businesses into scope for the first time. An additional £2 billion per year of scheme capacity is also being made available, reducing the risk of accredited lenders reaching their allocation limits.
- 10-year terms on GGS term loans up to £1.1m - announced 14 July 2026, implementation TBC
- Turnover ceiling rising from £45m to £54m
- £2bn per year additional scheme capacity
- Loans above £1.1m remain subject to the existing 6-year maximum
- Revolving credit facilities and overdrafts retain their 3-year maximum
Who benefits most from 10-year GGS terms?
The extension to 10 years is most valuable for businesses borrowing larger amounts where the 6-year repayment schedule produced monthly commitments that were difficult to service. For a £1 million facility at 9%, the move from 6 years to 10 years reduces monthly repayments by approximately £5,300 per month.
Businesses that were previously deterred by the cash flow burden of 6-year repayments may now find the scheme viable. This is particularly relevant for capital-intensive sectors such as manufacturing, logistics, and hospitality where significant asset investment requires long amortisation periods to remain commercially viable.
- Capital-intensive businesses buying equipment, fit-out, or vehicles with a long useful life
- Businesses where 6-year repayments pushed the debt service coverage ratio below lender thresholds
- Mid-market businesses between £45m and £54m turnover now in scope for the first time
- Acquisition and MBO finance where extended terms improve early-year cash flow
- Businesses wanting to preserve working capital headroom by reducing fixed debt commitments
Monthly repayment comparison: 6 years vs 10 years
The figures below illustrate the impact of the extended term on monthly repayments at an indicative 9% interest rate. The reduction in monthly cost is material, though total interest paid over the full term increases. The right term depends on your cash flow position, DSCR requirements, and total cost priorities.
- £250,000 at 9%: 6 years approx. £4,495/month; 10 years approx. £3,165/month (saving approx. £1,330/month)
- £500,000 at 9%: 6 years approx. £8,990/month; 10 years approx. £6,330/month (saving approx. £2,660/month)
- £750,000 at 9%: 6 years approx. £13,485/month; 10 years approx. £9,495/month (saving approx. £3,990/month)
- £1,000,000 at 9%: 6 years approx. £17,980/month; 10 years approx. £12,660/month (saving approx. £5,320/month)
- £1,100,000 at 9%: 6 years approx. £19,778/month; 10 years approx. £13,926/month (saving approx. £5,852/month)
- Figures are indicative only. Actual rates are set by accredited lenders based on your credit profile.
How to access the new 10-year GGS terms
The 10-year terms will become available through GGS-accredited lenders once the scheme parameters are updated by the British Business Bank. Not all accredited lenders will activate 10-year terms at the same time; lender adoption will vary. Working with a broker who monitors the accredited panel will help you identify which lenders have activated the new terms and at what pricing.
Applications for 10-year facilities should include forecasts extending across the full term. Lenders will assess whether your business can sustainably service the facility for 10 years, and a credible downside scenario demonstrating continued serviceability under stress will strengthen your application materially.
Worked Example
A logistics business wants to borrow £900,000 under the GGS to fund a fleet of new vehicles. Monthly cash flow after existing commitments is £11,000. It needs to compare the 6-year and 10-year options under the Mansion House expansion.
- At 9% over 6 years: monthly repayment of approximately £16,182 - exceeds available cash flow of £11,000
- At 9% over 10 years: monthly repayment of approximately £11,394 - just within available cash flow
- DSCR on 10-year term: approximately 0.97x - marginally tight, lender may require downside sensitivity
- Business upgrades its forecast pack to include a downside showing 15% revenue reduction, DSCR remains above 0.8x
- Lender approves the 10-year facility, noting the detailed forecast work as a positive signal
The business secures a £900,000 GGS facility at 9% over 10 years. Without the Mansion House extension, the 6-year repayment schedule would have been unaffordable and the application declined.
Frequently Asked Questions
Are 10-year GGS terms available now?
The 10-year GGS term was announced at Mansion House on 14 July 2026. Implementation dates are to be confirmed by the British Business Bank. Speak to Spark Finance or check with GGS-accredited lenders for the latest position on when new terms become available.
What is the maximum loan for a 10-year GGS term?
Under the Mansion House 2026 announcement, 10-year terms apply to GGS term loans up to £1.1 million. Facilities above £1.1 million remain subject to the existing 6-year maximum term.
Does the 10-year term apply to all GGS products?
The 10-year extension applies to term loans up to £1.1m. Revolving credit facilities and overdrafts retain their existing 3-year maximum. Asset finance and invoice finance terms are governed by separate parameters and are not directly affected by this announcement.
Does my business now qualify if turnover is between £45m and £54m?
Subject to implementation of the announced changes, yes. The turnover ceiling is rising from £45 million to £54 million, bringing mid-market businesses into eligibility scope for the first time. Verify current eligibility with your lender or broker once implementation is confirmed by the British Business Bank.
Can I repay a 10-year GGS loan early?
Most GGS lenders allow early repayment, though early repayment charges (ERCs) typically equivalent to 1 to 3 months' interest may apply. Confirm the ERC position before signing any facility agreement, particularly for longer-term loans where the interest saving from early repayment is larger.