Access to finance is still one of the biggest barriers for UK SMEs. The UK Government’s Growth Guarantee Scheme (GGS) helps businesses secure commercial funding with a government-backed guarantee to lenders.
This guide explains how the scheme works, who can apply, and what has changed now that it has been extended to 31 March 2030.
What Is the Growth Guarantee Scheme?
The Growth Guarantee Scheme (GGS) is the successor to the Recovery Loan Scheme.
It is run by the British Business Bank on behalf of the UK Government and provides lenders with a 70 per cent government guarantee on eligible business finance. This means the government shares risk with the lender, making it possible for more businesses to secure funding that might otherwise be difficult to obtain.
The guarantee is provided to the lender, not the borrower. Businesses are fully responsible for repaying the borrowing.
Updated Scheme Duration to 2030
Originally the scheme was due to end in March 2026, but the government has extended it to 31 March 2030. This gives businesses more time to plan applications and secure funding under the scheme’s terms.
All core terms remain unchanged with the extension, including the government guarantee percentage, types of finance supported and eligibility criteria.
What Types of Finance Are Supported?
Under GGS, accredited lenders can offer a range of finance products, including:
- Term loans
- Asset finance
- Invoice finance
- Asset-based lending
- Overdrafts
These products can support investment, growth projects or working capital needs. Facility sizes generally range from around £10,000 up to £2 million, although exact limits are set by the lender.
Repayment terms vary by product, with term loans and asset finance often available up to six years.
Who Can Apply?
The Growth Guarantee Scheme is designed for UK businesses that:
- Are trading in the UK
- Have an annual turnover up to £45 million
- Generate more than 50 per cent of turnover from trading activity
- Meet normal lender credit and affordability checks
- Are not in insolvency proceedings
Previous users of the Coronavirus Business Interruption Loan Scheme (CBILS), Bounce Back Loan Scheme (BBLS) or Recovery Loan Scheme are still eligible, though prior borrowing may affect the maximum available under GGS.
Each lender applies the scheme criteria as part of its normal credit assessment process.
What Can the Funds Be Used For?
GGS funding can be used to support a broad range of business needs, including:
- Buying equipment or machinery
- Investing in vehicles or technology
- Expanding premises or facilities
- Managing working capital
- Supporting growth activities
The scheme is flexible, but borrowers must be able to afford the finance as part of their business plan.
How the Government Guarantee Works
The government does not pay part of the loan or reduce repayments for the business. The 70 per cent guarantee is provided to the lender and covers part of the lender’s potential loss if the business defaults. This helps lenders extend credit they might not otherwise approve under standard commercial terms.
The business remains responsible for repaying 100 per cent of the borrowing.
When to Consider GGS
The Growth Guarantee Scheme may be suitable when:
- Your business needs funding that traditional lenders are hesitant to provide
- You are investing in growth, new equipment or working capital
- You want access to a broader panel of lenders
- You need support bridging tighter lending markets
Even with the extension to 2030, it is sensible to start the application process early. Lenders typically take several weeks to assess applications, prepare offers and release funds.
How Johnson Reed Can Help
At Johnson Reed, we help business owners navigate government-backed finance schemes like GGS. Our support includes:
- Assessing whether GGS is right for your business
- Explaining eligibility and likely outcomes
- Preparing your application
- Matching you to accredited lenders
- Helping you compare loan terms
We work with you to find the best solution, not just the first available product.
To discuss whether the Growth Guarantee Scheme could support your plans, call us on 0161 429 6949 or contact us here.
Final Thought
With the Growth Guarantee Scheme extended to March 2030, UK businesses have more time to access government-backed funding for growth and investment. Understanding how the scheme works and preparing your application early can give you an advantage in securing the finance your business needs.
