Growth Guarantee Scheme

In July 2024, the government launched an exciting new scheme called the Growth Guarantee Scheme replacing the Recovery Loan Scheme, supporting the growth of British SMEs.

Growth Guarantee Scheme
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What is the Growth Guarantee Scheme?

The government backed Growth Guarantee Scheme replaces the Recovery Loan Scheme (which in turn replaced the Bounce Back Loan Scheme) with the same loan terms as the Recovery Loan Scheme. The Growth Guarantee Scheme will run from its 1 July launch until 31 March 2026 and is estimated to help 11,000 businesses borrow up to £2M.

This rebrand from the Recovery Loan Scheme to the Growth Guarantee Scheme demonstrates a commitment from the government to support the growth of British SMEs, given in the first instance the focus was on recovery and here the branding is centred around growth.

The government guarantee covers 70% of the loan amount, providing more security for lenders and a stronger incentive to extend credit to eligible businesses. The original iteration of this scheme started as a response to the difficulties many businesses faced as a result of Covid 19.

This scheme can be used to support pivotal business expenses, including equipment purchases, marketing campaign funding, and payroll. The scheme is launched in the hopes that businesses will have easier access to essential funding and vital support to facilitate growth thereby boosting the economy. There is also the hope that this scheme will enable reduced interest rates given the guarantee helps limit some of the exposure for lenders.

Is my business eligible for the GGS?

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, 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.

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.

Financial product information

Representative example*

7.63% APR Representative based on a loan of £50,000 repayable over 24 months. Monthly repayment of £2,252.94. The total amount payable is £54,070.56

*Some lenders may apply fees during the application process, please note that these are set and provided by these entities.

Annual Percentage Rate

Rates from 2.75% APR

Repayment period

1 month to 30 years terms

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