Growth Guarantee Scheme
Government-backed funding to support investment and growth
Loan Amount
£25k-£2m
Loan Term
Up to 6 years
Time to Funds
As Little as 7 days
Interest Rate
Approx 7-18% p.a.
Growth Guarantee Scheme
- Borrow in addition to CBILS or other facilities
- Fund growth, take opportunities, fund acquisitions
- Supports loans, invoice finance and asset finance
Growth Guarantee Scheme​: What You Need to Know
The Growth Guarantee Scheme (GGS) is a new government-backed loan scheme designed to support businesses like yours invest and grow. This scheme replaces the Recovery Loan Scheme (RLS)
The Scheme could suit you if you can afford to take out additional debt finance and are looking to grow. You could use it for any legitimate business purpose, including managing cashflow, investment and growth. However, unlike the Bounce Back and CBILS scheme that it replaces, you’ll pay all of the fees and interest costs.
Key features of the Growth Guarantee Scheme​
The Growth Guarantee Scheme is a Government guarantee given to lenders to encourage them to increase lending to businesses like yours. The scheme guarantees a wide range of products, covering business loans, overdrafts, asset finance and invoice finance facilities.Â
Firstly, you can borrow up to a maximum of £2 million, available on repayment terms up to six years. However, your application will be assessed by lenders according to their own normal criteria.
Secondly, you can borrow via asset and invoice finance, and term loans and overdrafts.
And thirdly, you’ll also be required to meet the costs of interest payments and any fees associated with the facility from the outset.
You’ll go through all the usual lender checks. These will include standard credit, fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks for all applicants.
Your business remains 100% liable for repayment of the facility. If you can’t repay, as a last resort, the government would repay the lender, up to 70% of the outstanding balance. The scheme therefore aims to encourage lenders to say “yes” more often.
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Growth Guarantee Scheme​ eligibility
The scheme is open to most businesses who meet the eligibility criteria, regardless of turnover. If you have an existing facility under either the Bounce Back Loan Scheme, CBILS or RLS you can still access the new scheme. Keep in mind that you’ll need to be eligible and meet a lender’s assessment of affordability. This is typically ensuring your business makes enough cash each year to repay all of your debt repayments.
Am I eligible for the Growth Guarantee Scheme​?
To be eligible for a facility under the Recovery Loan Scheme, you must meet certain eligibility criteria.
– You are a UK-based in your business activity and generate more than 50% of turnover from trading activity.
– You’re engaged in trading activity in the UK.
– You have a borrowing proposal which would be considered viable by the lender.
– You’re not be in collective insolvency proceedings.
In addition to this:
– You cannot be a bank/ building society; an insurer or reinsurer (can be an insurance broker). You can’t be a public-sector body; a state funded primary or secondary school. Lastly, you can’t be an individual other than a sole trader or a partner acting on behalf of a partnership.
– If a lender can offer finance on normal commercial terms without the need to make use of the scheme, they may do so.
Do I need to give a personal guarantee?
You may need to give a personal guarantee at a lender’s discretion. In our experience lenders ask for personal guarantees in 90% of cases. The Government guarantee will only be called upon if a lender cannot recover the full debt from the business or via your personal guarantee.
Can I have CBILS as well as Growth Guarantee Scheme​?
Yes, you can access the scheme if you already have a CBILS loan. Keep in mind you must meet the eligibility criteria and pass any lender affordability checks.
Can I have Bounce Back as well as Growth Guarantee Scheme​?
Yes, you can access the scheme if you already have a Bounce Back loan. Keep in mind you must meet the eligibility criteria and pass any lender affordability checks.
Can I have RLS as well as Growth Guarantee Scheme​?
Yes, you can access the scheme if you already have a Bounce Back loan. Keep in mind you must meet the eligibility criteria and pass any lender affordability checks.
Can a business use the Growth Guarantee Scheme to refinance debt?
Yes, you can use GGS to refinance debt.
Your business can, in certain circumstances, use an GGS facility to refinance existing debt. For example, where your business is seeking to put itself on a more stable financial footing and/or improve its working capital position, then in principle an GGS facility could be provided where the business meets the GGS eligibility criteria.
Refinancing can be undertaken with or without an increase in the original borrowing.
Further Information
For futher information read the the detailed FAQs on the British Business Bank’s website.Â
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