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The Growth Guarantee Scheme – top questions answered

Business Finance

The Growth Guarantee Scheme – top questions answered

Updated: 8 July 2024

The Growth Guarantee Scheme, the new Government-backed finance scheme, launched on 1st July. Here is everything you need to know about the scheme. 

What is the Growth Guarantee Scheme? 

The Growth Guarantee Scheme (GGS) is the successor to the Recovery Loan Scheme. It is designed to support access to finance for UK smaller businesses as they look to invest and grow. 

The Growth Guarantee Scheme launched with accredited lenders on 1 July 2024, with a wide range of products supported by different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.

The terms of the scheme are intended to remain broadly unchanged from the Recovery Loan Scheme, enabling continuity and consistency for lenders and the business community.

Who runs the Growth Guarantee Scheme?

The British Business Bank will administer the Growth Guarantee Scheme on behalf of the Secretary of State for Business and Trade.

What size loan could I get under the Growth Guarantee Scheme?

The Growth Guarantee Scheme can generally support facility sizes of up to £2m, although it will vary by provider. 

How does the guarantee work?

The Growth Guarantee Scheme provides lenders with 70% government-backed guarantee. That means if the business who take a loan is unable to repay the debt, the lender can recover some of the funds from the government. This allows lenders to approve more loan applications and help more businesses.

Please note that the guarantee is to the lender, not the business, and you are always 100% liable for the debt.

What happens to the Recovery Loan Scheme?

The first two iterations of the Recovery Loan Scheme, designed to help UK businesses access finance as they recovered from the Covid-19 pandemic, supported £4.3bn of finance to smaller UK businesses.

The third iteration of the scheme has offered more than £1bn of finance since its launch in August 2022. 

The Recovery Loan Scheme (RLS) was available until the end of June 2024 and will now be replaced with GGS, the updated version of the scheme, across all providers. 

I already have a CBILS, BBLS or RLS loan – am I eligible to apply for the Growth Guarantee Scheme?

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. 

Looking for finance?

We’re now offering the Growth Guarantee Scheme alongside our Funding Circle business loans so we can say yes to even more businesses. Simply fill in one application online, which won’t impact your credit score, and we’ll assess you for both products on the best possible terms. All of our loans come with no early settlement fees, so you have the flexibility to pay it off any time that suits you, and if approved you’ll get your funds in as little as 48 hours. 

Check your eligibility in just 30 seconds here. 

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