Growth Guarantee Scheme now open for applications

The successor to the Recovery Loan Scheme, the Growth Guarantee Scheme, has now been launched by British Business Bank.

The Scheme, which helps smaller businesses in the UK to be able to access finance, opened to applications via accredited lenders on 1 July 2024. The scheme includes access to term loans, overdrafts, asset finance, invoice finance and asset-based lending.

A key feature of the Scheme is that the government provides the lender with a 70% government-backed guarantee. The guarantee is to the lender only, the borrower always remains 100% liable for the debt.

Criteria for being eligible include:

• The business (or the group) having turnover of less than £45m.
• Trading activity is carried out in the UK, and more than 50% of the business’ income is from trading activity.
• The lender has to feel that the business proposition for the finance is viable.
• The business must not be in difficulty, including being involved in insolvency proceedings.
• Since the assistance is considered a “subsidy”, the business cannot exceed the maximum amount of subsidy (from all sources) that they are allowed to receive.

Generally, finance facilities of up to £2m can be covered by the Growth Guarantee Scheme. Borrowers in scope of the Northern Ireland Protocol are generally limited to £1m.

If you need help raising finance for your business, or you are not sure which type of finance would be most suited to your needs, please feel free to contact us and we’ll be pleased to help you.

For more information about the Scheme, see: https://www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme

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