Launched in July 2024, the Growth Guarantee Scheme (GGS) replaced the Recovery Loan Scheme (RLS 3.0) to improve access to finance for UK small businesses aiming to invest and grow. Backed by the government, GGS offers a 70% guarantee to lenders on loans of up to £2 million. This reduces lender risk and enables more favourable loan terms for businesses that might not qualify for standard funding. While lenders benefit from government-backed security, borrowers remain fully responsible for repaying 100% of the loan. GGS is expected to support around 11,000 smaller businesses, helping to unlock growth and expansion opportunities.
The Growth Guarantee Scheme is available to UK businesses with growth potential. Eligibility typically requires your business to have been operating for at least 12 months, demonstrate growth potential, and have a solid business plan. The scheme is aimed at businesses in need of funding to accelerate growth, particularly those in sectors identified by the government as key for economic recovery.
Under the Growth Guarantee Scheme, businesses can access loans ranging from £25,000 to £500,000, depending on the nature of the business and its growth plans. The scheme is designed to provide flexible funding to support business expansion, working capital, and other growth-related initiatives.
The approval process for the Growth Guarantee Scheme can typically take 2–4 weeks, depending on the complexity of your application and supporting documentation. Once approved, funding is usually released within a few days, helping businesses access the funds they need to accelerate growth.
The Growth Guarantee Scheme can be used for a range of purposes, including hiring new staff, purchasing new equipment, expanding operations, and financing growth initiatives. It’s aimed at helping businesses with high growth potential scale their operations and seize new opportunities.
The Growth Guarantee Scheme typically offers competitive interest rates, ranging from 5% to 10%, depending on the lender and the business’s profile. Repayment terms are flexible, often spanning between 1 to 5 years. There may also be arrangement fees or other administrative costs associated with the loan.
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Once approved, your funds are released quickly — often within 24–48 hours — so you can get back to growing your business.
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To apply for the Growth Guarantee Scheme (GGS), businesses must go through a participating accredited lender. These include a wide range of high-street banks, alternative finance providers, and specialist business lenders. Each lender will assess your eligibility, credit history, and business plan to determine whether you qualify for support under the scheme.
The application process typically involves providing detailed information about your business finances, cash-flow forecasts, growth objectives, and repayment strategy. If approved, the government will guarantee a percentage of the loan to the lender, which helps facilitate access to finance for businesses that may not meet traditional lending criteria.
Working with an accredited lender ensures that your application is aligned with the official terms of the Growth Guarantee Scheme and that you receive expert guidance throughout the process.
The Growth Guarantee Scheme is designed to support UK-based small and medium-sized enterprises (SMEs) with the potential for growth but who may struggle to access traditional finance.
To qualify, your business must operate in the UK, demonstrate viable trading performance, and show that it can repay the borrowing in full.
Lenders will look for evidence of a solid business plan, healthy cash flow projections, and realistic growth targets. While the scheme aims to help businesses that might lack sufficient security or collateral for a standard commercial loan, it is still subject to credit and affordability assessments.
Most sectors are eligible, though a few restricted industries may not qualify under government guidelines.
The Growth Guarantee Scheme is primarily aimed at established businesses rather than brand-new startups. It is intended to help companies with a proven trading history that need financial support to expand operations, invest in assets, or improve working capital.
However, some early-stage businesses that have been trading for a short period and can demonstrate viability and growth potential may still be considered by certain lenders.
Startups seeking funding at an earlier stage might wish to explore other government-backed finance options, such as the Start Up Loans Programme, which is specifically designed for new entrepreneurs.
The Growth Guarantee Scheme supports several types of business finance products, offering flexibility to meet different funding needs. These include:
By offering a variety of lending options, the Growth Guarantee Scheme enables businesses to access affordable finance tailored to their operational goals, whether they’re investing in growth or stabilising cash flow.
Yes, there can be costs and fees associated with loans under the Growth Guarantee Scheme, depending on the lender and type of finance product chosen.
Typical charges may include arrangement fees, administrative fees, and interest costs, similar to standard business lending.
However, because the UK Government provides a partial guarantee to the lender, the scheme can often help businesses secure better terms and lower borrowing costs than they might otherwise obtain.
Borrowers remain fully responsible for repaying the debt, but the government’s backing gives lenders additional confidence to offer funding to businesses that might not otherwise qualify.
It’s always advisable to review the full costs, repayment schedule, and terms with your lender before committing to ensure the finance suits your long-term business strategy.
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"The Growth Guarantee Scheme supports ambitious businesses by providing access to affordable loans backed by government guarantees. This helps businesses secure funding for expansion, innovation, or scaling, even in scenarios where traditional lending criteria might be a barrier."
