Growth Guarantee Scheme: empowering businesses to scale confidently
The Growth Guarantee Scheme helps eligible UK SMEs access finance by giving lenders a 70% government guarantee (you remain 100% liable). We compare options across 80+ lenders so you can apply in minutes and choose the best fit.
Last updated: October 2025, edited by Joe Morley, reviewed by Vivek Seda
What is the Growth Guarantee Scheme?
Key takeaways
What it is: Successor to the Recovery Loan Scheme; launched 1 July 2024, extended to 31 March 2026.
Who it’s for: UK businesses with turnover ≤ £45m (group basis where relevant).
Products covered: Term loans, overdrafts, asset finance, invoice finance, asset-based lending.
Facility sizes: Typically up to £2m per business group (limits vary; NI has specific rules); minimums: £25,001 (term loans/overdrafts), £1,000 (invoice, asset finance, ABL).
Terms: Term loans/asset finance 3–72 months; overdrafts/invoice/ABL 3–36 months.
The guarantee is to the lender, not the borrower; lenders should only use GGS if they can’t offer equivalent/better terms commercially.
What is the Growth Guarantee Scheme?
GGS is a UK government-backed programme administered by the British Business Bank to support access to finance for smaller businesses. It provides a 70% guarantee to participating lenders on eligible facilities; the borrower remains fully liable for the debt.
Eligibility (high level)
UK-based trading business, typically ≤ £45m turnover (group basis).
Viable proposition and affordability (standard credit and fraud checks apply).
Lender must assess whether a non-GGS facility on equivalent/better terms is possible first.
Products & terms covered
Term loans (3–72 months)
Asset finance (3–72 months)
Overdrafts, invoice finance & ABL (3–36 months)
Not all lenders offer all products under GGS.
Facility sizes and limits
Maximum facility
typically up to £2m per business group (varies; different cap in NI).
Minimum facility
£25,001 for term loans/overdrafts; £1,000 for invoice, asset finance and ABL.
Alternatives to consider
Unsecured business loans
No collateral required, based on your credit profile.
Secured business loans
Revolving credit facility
Draw down funds when needed, repay, and re-borrow. A flexible alternative to a fixed-term loan.
Invoice finance
Invoice finance releases money tied up in unpaid invoices.
Traditional invoice finance (factoring or discounting)
It involves funding all or most of your sales ledger on an ongoing basis.
Asset finance
Asset finance is used to fund vehicles, machinery and equipment.
Hire purchase
Spread the cost and gain ownership at the end, often after a nominal option to purchase fee. Suited to assets you plan to keep long term. Learn more about hire purchase.
Finance lease
You rent the asset for most of its useful life. At the end, you can continue leasing, sell on behalf of the lessor or upgrade. Ownership stays with the lender. Learn more about finance lease.
GGS Costs and fees
What to expect
Interest/fees set by lenders; normal credit pricing applies.
The government guarantee supports the lender’s risk but doesn’t subsidise your repayments; you remain responsible for 100% of the borrowing.
Lenders may charge arrangement or product-specific fees.
Important: This page provides general information, not financial advice. Terms vary by lender and case.
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Is my business eligible?
Turnover below £45 million
This scheme is targeted towards small businesses and as such, you must have a turnover of below £45 million. The last iteration (the Recovery Loan Scheme) predominantly supported businesses with fewer than 50 employees. Limited companies, sole traders, limited liability partnerships, and cooperative societies who have been trading for longer than two years are all eligible.
Banks are not eligible
Banks, public sector companies, and businesses currently undergoing insolvency proceedings are not eligible. Additionally, businesses who gain more than 50% of their revenue from rentals or other non-trading activities are also ineligible.
Up to £2 million
Eligible funding solutions are offered for up to £2 million and businesses must be UK based and have a suitable business plan. If you meet these criteria, you can apply even if you have previously been awarded support through the Recovery Loan Scheme or Bounce Back Loan Scheme.
Learn more about the Growth Guarantee Scheme
Is GGS a grant or a government loan?
Neither. It’s a lender-side guarantee. You borrow from a participating lender and remain 100% liable.
Do I get better rates automatically under GGS?
Not necessarily. The lender must offer standard terms if they’re equal or better; GGS is used when it can’t. Pricing remains case-by-case.
How fast can I get funding?
Some lenders can fund in days once documents and checks are complete, but timelines vary by product and case.
What can I use GGS funding for?
Working capital, growth, investment, refinancing of existing debt (subject to lender policy) - standard business purposes.
What’s the turnover limit?
Generally ≤ £45m annual (group basis).
What are the minimum and maximum facility sizes?
Minimums: £25,001 for term loans/overdrafts; £1,000 for invoice/asset/ABL. Maximum: typically up to £2m per business group (varies by location/product).
Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.
It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.
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Joe Morley
Business Finance Lead
Joe has been helping UK businesses secure the funding they need since 2015. Over the years, he’s supported hundreds of SMEs in accessing millions of pounds for everything from purchasing essential assets to unlocking working capital for day-to-day operations. As Head of Sales at Funding Options, Joe leads a large team of expert Business Finance Specialists dedicated to finding the right solution for every customer. His goal is simple - to make securing finance straightforward, stress free, and tailored to each business’s needs.