The Growth Guarantee Scheme Explained: Government-Backed Business Loans

The Growth Guarantee Scheme (GGS) is a UK government-backed programme run by the British Business Bank to improve access to finance for smaller businesses. If a bank has been hesitant, GGS-backed lending can open doors. Here's how it works, who qualifies and how to apply.

What is the Growth Guarantee Scheme?

Under the GGS, the government provides accredited lenders with a 70% guarantee against the outstanding balance of an eligible facility, after the lender has completed its normal recovery process. This reduces the lender's risk and can make them more willing to support businesses that might otherwise fall just outside standard criteria. Importantly, the borrower remains 100% liable for repaying the debt. The guarantee protects the lender, not the borrower.

What can it support?

The scheme can back term loans, overdrafts, invoice finance, asset finance and asset-based lending, giving businesses flexibility in how they fund growth or manage working capital.

How much can you borrow?

Facilities can be up to £2 million per business (up to £1 million for businesses covered by the Northern Ireland Protocol). Minimum sizes depend on the product: from £1,000 for asset finance, invoice finance and asset-based lending, and from £25,001 for term loans and overdrafts.

Who is eligible?

• UK-based smaller businesses carrying out trading activity in the UK.
• Businesses generating more than 50% of their income from trading activity.
• Businesses within the scheme's turnover limit for smaller businesses.
• Applicants with a viable proposition who can evidence affordability in the normal way.

Eligibility and scheme details can change over time, so it's worth confirming the current position with an accredited lender or finance specialist before applying. Qualifying for the scheme does not guarantee approval, because the lender still makes its own credit decision.

Security and personal guarantees

Lenders may take a personal guarantee at their discretion, in line with their normal lending practice. However, a borrower's or guarantor's main home (principal private residence) cannot be taken as security, or used to support a personal guarantee, for a GGS-backed facility.

How do you apply?

You cannot apply to the British Business Bank directly. You apply through one of its accredited lenders, which range from high street and challenger banks to specialist and asset-based lenders. You will usually need recent accounts and management figures, bank statements, a clear purpose and repayment plan for the funding, and details of any existing borrowing.

How we help

Not every lender is accredited for the scheme, and matching your need to the right accredited funder makes the difference. We identify suitable lenders and structure the application to fit both the lender's and the scheme's requirements. At Sadi's Commercial Finance we help UK businesses access government-backed and mainstream funding alike, and we will tell you plainly if another product suits you better.

Exploring government-backed funding? See our business loans service, read about our revolving credit facility, or speak to a specialist.

Frequently asked questions

What is the Growth Guarantee Scheme?

A government-backed scheme that gives lenders a 70% guarantee on eligible facilities, helping smaller UK businesses access finance.

Does the guarantee protect me as the borrower?

No. It protects the lender. You remain fully liable for the debt.

How much can I borrow under the scheme?

Up to £2 million per business, or up to £1 million for businesses covered by the Northern Ireland Protocol.

Can a lender ask for a personal guarantee?

Yes, at the lender's discretion. Your main home cannot be used as security or to support a personal guarantee under the scheme.

Can I apply directly to the British Business Bank?

No. You apply through an accredited lender, or through a broker who approaches lenders for you.

Is approval guaranteed if I qualify?

No. Lenders still assess each application on its own merits.