Growth Guarantee Scheme - loans available

Blogs 20 Dec 2024

Finance experts from FSB Funding Platform answer your frequently asked questions about how the Growth Guarantee Scheme (GGS) Loans work, what’s involved, and how they’ve made the application process easier for FSB members.

A version of this article was first published in June 2021. 

The Growth Guarantee Scheme is a UK Government initiative that launched on 1 July 2024, replacing the Recovery Loan Scheme. The Scheme is designed to help UK businesses access funding they might not otherwise qualify for by reducing the lender’s risk.

The Scheme exists to continue to support small businesses across the UK, offering funding options from £1,000 and up to £2 million through term loans, invoice finance, asset finance, and overdrafts. With 70% of the loan guaranteed by the Government, it is designed to make finance more accessible for small businesses.

Whether you’re looking to expand, invest in new equipment, or strengthen cash flow, the Scheme could provide the financial support your business needs.

Key facts about the Growth Guarantee Scheme

  • Available from July 2024 to March 2026
  • £1,000 and £2 million as invoice finance or asset finance
  • £25,001 to £2 million available per business group

Personal guarantees likely to be required. More information about personal guarantees is available here.

Is my business eligible for the Growth Guarantee Scheme?

The terms of the Scheme it is similar to the previous Recovery Loan Scheme. To be eligible, your business needs to:

  • Be incorporated in the UK and be UK based 
  • Have an annual turnover of no more than £45 million
  • Generate at least 50% of revenue from ‘trading activities’, this excludes rental income
  • Not be a bank, building society, public sector body or state funded primary or secondary school 

The decision to offer a Growth Guarantee Scheme is always at the lender's discretion. Lenders will only choose to lend on the scheme if there is a clear affordability shown to support the loan. If the business meets their normal lending criteria, they must offer the facility on their usual commercial lending terms, instead of using the Scheme. 

What types of business finance can I access under the Growth Guarantee Scheme?

Term loan

A straightforward cash injection you pay back over time. You might use a loan for R&D (research and development), moving to a new premises, or refinancing an existing loan. More information about R&D loans is available to FSB members on the  FSB Legal and Business Hub.

Invoice finance

Invoice finance enables you to speed up your business cash flow by getting an advance on money owed to you in invoices, without waiting for debtors to pay you.

Asset finance

A loan designed for purchasing assets for your business. You might upgrade your equipment, tech, or invest in machinery.

Overdraft

Business overdrafts let you spend beyond your business account balance, maybe for a new project which requires marketing investment or a bargain stock purchase.

How can I apply for the Growth Guarantee Scheme?

Applications for the Scheme are open until March 2026.

FSB Funding Platform is providing FSB members with an easy way to apply. Simply log in to your member dashboard to get started. From here you can see how much you could be eligible to borrow and start your funding application. Alongside dedicated support from a funding specialist, you will be able to apply to multiple lenders in just one application.

How do I access the Growth Guarantee Scheme? 

Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2024 are not prevented from accessing GGS, but  borrowing under these schemes may reduce the maximum amount the borrower is eligible for.

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Fuel your business growth with an all-in-one funding platform for small businesses, provided by Capitalise. Apply for funding, review your financial health and check company credit scores.

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