Growth Guarantee Scheme (GGS): A Guide for UK Businesses
For businesses looking to invest in equipment, support cash flow or fund future growth, access to the right finance can play an important role in achieving long-term plans.
The Growth Guarantee Scheme (GGS) is a Government-backed initiative designed to help smaller UK businesses access commercial finance through accredited lenders. Delivered by the British Business Bank, the scheme gives lenders additional support when providing funding to eligible businesses.
Originally introduced as the replacement for the Recovery Loan Scheme, recent Government announcements indicate the scheme will remain available until 31 March 2030, giving UK businesses continued access to Government-backed lending support over the coming years.
What Is the Growth Guarantee Scheme?
The Growth Guarantee Scheme is a Government-supported lending initiative available through accredited UK finance providers.
Under the scheme, the Government provides lenders with a 70% guarantee on eligible finance facilities. This reduces the lender’s risk and can help improve access to funding for businesses that may sit outside standard lending appetite.
The guarantee is provided to the lender only. Businesses remain fully responsible for repaying the borrowing in full.
The scheme supports a range of commercial finance products and is intended to help viable businesses secure funding for investment, expansion and operational requirements.
Why Has the Scheme Been Extended?
Recent Government announcements confirmed plans to extend the Growth Guarantee Scheme until 31 March 2030.
Many businesses continue to face higher operating costs, tighter lending conditions and increased pressure on cash flow. Extending the scheme provides longer-term confidence for both lenders and SMEs looking to invest in growth.
Although the duration of the scheme has changed, the key structure remains the same, including:
- A 70% Government guarantee to lenders
- Support for multiple finance products
- Availability through accredited lenders
- Standard commercial lending assessments
What Types of Finance Are Available Under GGS?
The Growth Guarantee Scheme can support several types of business finance through accredited lenders, depending on the needs of the business and the purpose of the funding.
This may include:
- Loans for business investment or expansion
- Asset finance for equipment, machinery and vehicles
- Invoice finance to help manage cash flow
- Working capital facilities such as overdrafts
- Other forms of asset-based lending
The type of finance available will depend on the lender’s own criteria, the strength of the application and how the funding will be used.
Funding is generally available from around £10,000 up to £2 million, although limits and repayment terms vary between lenders and products.
Who Can Apply for the Growth Guarantee Scheme?
The scheme is designed for smaller UK businesses with an annual turnover of up to £45 million.
To be considered, businesses will typically need to:
- Be trading in the UK
- Generate the majority of turnover from trading activity
- Meet the lender’s affordability and credit checks
- Not be in insolvency proceedings
Businesses that previously used Government-backed schemes such as CBILS, Bounce Back Loans or the Recovery Loan Scheme may still be eligible to apply.
As with any commercial finance application, approval will depend on the lender’s own assessment, underwriting process and the overall strength of the application.
What Can the Funding Be Used For?
The Growth Guarantee Scheme is designed to support genuine commercial business activity and investment.
Funding may be used for:
- Purchasing machinery or equipment
- Funding commercial vehicles
- Investing in technology or software
- Supporting business expansion
- Improving cash flow
- Funding operational growth
- Refinancing certain existing borrowing in some circumstances
The suitability of the funding will depend on the business’s financial position, affordability and intended use of funds.
How Does the Government Guarantee Work?
A common point of confusion is how the Government guarantee works.
The Government does not contribute towards the borrower’s repayments and does not repay part of the loan on behalf of the business.
Instead, the 70% guarantee is provided to the lender and helps cover a portion of the lender’s potential losses if the business defaults.
This can give lenders greater flexibility when considering applications that may fall outside standard lending appetite.
The borrower remains liable for 100% of the finance throughout the agreement.
Is Security Required?
Security requirements under the Growth Guarantee Scheme will depend on the lender, the type of finance and the size of the facility being requested.
As part of their normal lending assessment, some lenders may require:
- Personal guarantees
- Security over business assets
- Debentures or other forms of business security
Requirements vary between lenders and products, and not all facilities will require the same level of security.
Under current scheme rules, a borrower’s principal private residence cannot usually be taken as security for facilities below £250,000.
Are Interest Rates Lower Under GGS?
The Growth Guarantee Scheme is not a subsidised loan scheme.
Interest rates and fees are set by individual lenders and will vary depending on factors such as:
- The strength of the business
- Trading history
- Affordability
- Security available
- Type of finance being used
Businesses should compare overall borrowing costs and terms carefully before proceeding.
When Might GGS Be Worth Considering?
The scheme may be suitable for businesses that:
- Are investing in growth
- Need funding for equipment or assets
- Require working capital support
- Want to preserve cash flow
- Have found traditional lending options more limited
- Are looking to access funding through accredited lenders
Although the scheme has been extended until 2030, businesses should still allow time for the application and approval process, particularly where detailed financial information or security is required.
How Johnson Reed Can Help
At Johnson Reed, we work with businesses across a wide range of industries to help identify suitable finance solutions, including Government-backed schemes such as the Growth Guarantee Scheme.
Our team can help with:
- Understanding whether GGS is suitable for your business
- Assessing eligibility and likely lender appetite
- Preparing supporting documentation
- Accessing accredited lenders
- Comparing funding structures and repayment terms
- Identifying the most appropriate funding route for your requirements
Our aim is to help businesses find funding that fits their requirements and future plans.
To discuss your options, contact Johnson Reed on 0161 429 6949 or get in touch with our team.
Frequently Asked Questions
Is the Growth Guarantee Scheme a Government loan?
No. The finance is provided by commercial lenders, not directly by the Government. The Government provides a guarantee to the lender on eligible facilities.
Does the Government pay part of the loan back?
No. Businesses remain fully responsible for repaying 100% of the borrowing.
Can startups apply for the Growth Guarantee Scheme?
Some lenders may consider newer businesses or startups, although eligibility and appetite will vary depending on the lender and the strength of the proposal.
Can I apply if I already have a Bounce Back Loan or CBILS facility?
Yes. Previous use of Government-backed schemes does not automatically exclude businesses from applying, although it may affect the amount available.
What is the maximum amount available under GGS?
Facilities are generally available up to £2 million per business group, subject to lender criteria and affordability.
How long does the application process take?
Timescales vary depending on the lender, the type of finance and the complexity of the application. Some facilities may complete within days, while larger or more detailed applications can take several weeks.
Can GGS be used for equipment finance?
Yes. Asset finance is one of the products supported under the scheme and can be used to fund equipment, machinery, vehicles and technology.
Is the scheme available until 2030?
Recent Government announcements indicate the Growth Guarantee Scheme will remain available until 31 March 2030.
