Government-Backed Finance for Growing UK Businesses
The Growth Guarantee Scheme (GGS) is designed to help UK businesses access funding for growth, investment, and working capital support.
Backed by the British Business Bank, the scheme gives lenders additional security through a government-backed guarantee, helping improve access to finance for businesses that may not meet standard lending criteria alone.
At Johnson Reed, we help businesses explore Growth Guarantee Scheme funding alongside other flexible finance solutions, including business loans, asset finance, and equipment leasing.
Whether you’re investing in equipment, expanding premises, improving cash flow, or funding growth plans, GGS-backed finance could help make funding more accessible.
What Is the Growth Guarantee Scheme?
The Growth Guarantee Scheme replaced the Recovery Loan Scheme (RLS) and continues the government’s support for UK SMEs looking to grow.
The scheme supports:
- Business loans
- Asset finance
- Equipment finance
- Invoice and asset-based lending
- Working capital support
The government provides the lender with a partial guarantee, helping reduce risk and encouraging support for viable UK businesses.
It’s important to understand that businesses remain fully responsible for repaying the finance agreement.
What Can GGS Funding Be Used For?
Growth Guarantee Scheme funding can support a wide range of business needs, including:
- Purchasing equipment or machinery
- Expanding into new premises
- Hiring staff
- Managing working capital
- Investing in technology or vehicles
- Supporting growth plans
- Refinancing existing borrowing
At Johnson Reed, we’ll discuss what the funding is being used for and help explore the most suitable finance structure for your business.
In many cases, asset finance or equipment leasing may be a more practical option than a traditional unsecured loan, particularly where the funding relates to revenue-generating equipment
Who Can Apply for the Growth Guarantee Scheme?
Most UK businesses may be eligible if they:
- Trade within the UK
- Generate more than 50% of turnover from trading activity
- Have a turnover of up to £45 million
- Are not currently in insolvency proceedings
Eligibility and approval will still depend on affordability, business performance, and lender criteria.
At Johnson Reed, we help businesses understand whether GGS-backed funding may be suitable before approaching lenders.
Benefits of the Growth Guarantee Scheme
Improved Access to Finance
The government-backed guarantee can help improve lender appetite for supporting SMEs.
Flexible Funding Options
The scheme can support business loans, asset finance, and other structured funding solutions.
Preserve Working Capital
Businesses can spread costs into manageable repayments rather than using large amounts of cash upfront.
Support for Growth
Funding can be used to support expansion plans, equipment purchases, staffing, or operational investment.
Property Security Restrictions
Under the scheme, a borrower’s principal private residence cannot usually be taken as security by the lender.
Growth Guarantee Scheme & Asset Finance
For many businesses, combining GGS support with asset finance or equipment leasing can be a practical way to grow while protecting cash flow.
This can be particularly useful for businesses investing in:
- Construction equipment
- Commercial vehicles
- Manufacturing machinery
- Gym and fitness equipment
- Medical and dental equipment
- Catering and hospitality equipment
- IT and technology
Because the finance is linked directly to the asset being purchased, equipment finance can often offer a more structured and manageable funding route.
Why Work with Johnson Reed?
As a broker, Johnson Reed works with a wide panel of lenders to help businesses explore suitable finance options based on their goals, industry, and circumstances.
Rather than taking a one-size-fits-all approach, we’ll discuss:
- What the funding is needed for
- Your business plans and growth goals
- Cash flow and affordability
- Whether asset finance or leasing may be more suitable
- The most realistic funding routes available
Businesses choose Johnson Reed because we offer:
- Access to multiple lenders
- Flexible finance solutions
- Support for startups and established SMEs
- Fast, straightforward applications
- A practical, relationship-led approach
FAQs
Is the Growth Guarantee Scheme a grant?
No. The Growth Guarantee Scheme supports lending through a government-backed guarantee, but businesses are still responsible for repaying the finance.
Can startups apply for GGS funding?
Some startups may be eligible, although approvals will depend on the lender, affordability, and the type of finance being requested.
Can the scheme be used for equipment finance?
Yes. Asset finance and equipment finance are both supported under the scheme.
Does the government lend the money directly?
No. Funding is provided by accredited lenders, with the government offering a partial guarantee to support lending.
Can businesses with previous CBILS or Bounce Back Loans still apply?
In many cases, yes, although previous borrowing may affect the amount available.
Final Thoughts
The Growth Guarantee Scheme continues to provide valuable support for UK businesses looking to invest, expand, and improve cash flow.
Whether you’re purchasing equipment, funding growth plans, or looking for additional working capital, government-backed lending can help businesses access funding more confidently and flexibly. The most important step is understanding which financial structure best suits your business and growth plans.
