10 Reasons Why You Should Apply for the Government’s Recovery Loan Scheme

Running a business is tough. We get it. So when you're looking to take that next step, you need finance that’s straightforward. 

The successor scheme to the Recovery Loan Scheme, the Growth Guarantee Scheme (GGS), is designed to help. It's a Government-backed initiative that allows lenders like us to provide the finance you need to thrive and drive your business forward.

Not sure if the GGS is right for you? Here are 10 key things you need to know:

1. The Growth Guarantee Scheme is designed specifically to help businesses access finance

The Growth Guarantee Scheme (GGS) was designed by the Government expressly to support access to finance for UK small businesses as they look to invest and grow.

Money is loaned through accredited lenders, such as Funding Circle, and the Government gives the lender a 70% guarantee on the loans.

That means that if the business can’t repay the loan, the Government will reimburse the lender. Although the borrower remains 100% liable for the full loan amount, the guarantee allows lenders to say yes to more businesses.

2. Borrow £25,001 to £250,000 with a Government-backed loan through Funding Circle

The Growth Guarantee Scheme can generally support facility sizes of up to £2m per business group. At Funding Circle, we offer GGS loans of £25,001 to £250,000 to help you take your next step.

3. You could be eligible for a Government-backed loan

There are just a handful of criteria you need to meet to qualify for a GGS loan from Funding Circle. Your business needs to:

• Have a turnover of less than £30 million

• Have been trading in the UK for a minimum of 2 years

• Be a limited company

• Use the loan for business purposes, such as working capital or investment

• Not be in difficulty or have any collective insolvency proceedings ongoing

We ask for a personal guarantee on all loans, including those under GGS. However, Principal Private Residences cannot be taken as security under the Scheme.

The following types of businesses are not eligible for GGS loans:

• State-funded primary or secondary schools

• Public sector bodies

• Banks and building societies

• Insurers and reinsurers, with the exception of insurance brokers

4. The money can be used for almost any purpose

GGS loans can be used for any legitimate business purpose, including managing cash flow, investment and growth.

5. The Growth Guarantee Scheme terms are flexible

GGS loans through Funding Circle are available from two to six years.

6. There are no fees for full early repayment

If you want to settle your GGS loan through Funding Circle in full early, you can do so with no fees and you’ll only pay interest on the time you borrow.

7. You can access GGS funding even if you already have a Government-backed loan

If you took out a loan under the Coronavirus Business Interruption Loan Scheme (CBILS), Bounce Back Loan Scheme (BBLS) or Recovery Loan Scheme (RLS) before June 30, 2024, you are still eligible to apply for the Growth Guarantee Scheme (GGS).

The amount you have borrowed under a previous Government scheme may reduce the maximum amount you are eligible for under GGS.

8. The application process is simple

To keep things simple, you only need to make one 7-minute application to be considered for both the Growth Guarantee Scheme and our own fixed-rate business loans. We’ll then assess which product your business is eligible for, on the best possible terms.

If we can offer a business a loan on better terms without GGS, we will do so.

9. There’s no impact on your credit score to apply

If you’re a limited company, you can now apply for a loan and get a personalised quote without impacting your credit score. This is because we only run a soft credit check on your personal and business credit reports when you apply, meaning you can find out what you could borrow and decide if it’s right for you with complete peace of mind.

10. You’ll get a quick decision and the payout is fast

If approved, you can get a decision on your loan application in as little as 1 hour and, once you accept, the money is paid out typically within 48 hours. 

To see how we can help you, check your eligibility for a business loan in just 30 seconds.