New Finance Options for UK Small Businesses through Growth Guarantee Scheme

The Growth Guarantee Scheme is designed to support access to finance for UK smaller businesses as they look to invest and grow.

With a range of products supported by different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending, the new scheme is the successor to the Covid-era Recovery Loan Scheme. It provides the lender with a 70% government-backed guarantee.

The maximum amount of a facility provided under the scheme is generally £2 million per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1 million per business group for Northern Ireland Protocol borrowers. Minimum facility sizes vary, starting at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts.

The scheme is designed to appeal to businesses that can afford to take out additional debt finance. Firms may be eligible for a loan if they are trading in the UK and have a turnover of £45 million or less. Applicants need to show that their business is viable, and not in difficulty.

The funds can be used for any legitimate business purpose, including managing cashflow, investment and growth.

The scheme will run until the end of March 2026 through British Business Bank accredited lenders.