Growth Guarantee Scheme: how it works and who can apply
Most viable UK small and medium-sized businesses can apply, provided they trade in the UK, meet the scheme's size limits, earn…
Business loans
Growth Guarantee Scheme lenders compared: GGS loans and asset finance on our panel
Compare Growth Guarantee Scheme lenders on our panel: GGS term loans and asset finance, amounts, regions and security, and what the 70% guarantee covers.
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- Amount
- Up to £2 million per groupMost GGS term loans on our panel run to £250,000
- Guarantee
- 70% to the lenderYour business stays 100% liable
- Security
- Personal guarantees at lender discretionYour main home cannot be taken as security
- Facility types
- Loans, asset finance, overdraftsInvoice finance and asset-based lending too
In short
The Growth Guarantee Scheme (GGS) is a British Business Bank scheme that gives accredited lenders a 70% government-backed guarantee on eligible loans, asset finance, overdrafts and invoice finance for smaller UK businesses.
The guarantee protects the lender, not the borrower: you remain liable for the whole debt, and lenders can still ask for a personal guarantee, although your main home cannot be taken as security. Several lenders on our panel offer GGS-backed term loans from £25,001, and one offers GGS-backed asset finance.
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About Growth Guarantee Scheme loans
The Growth Guarantee Scheme, usually shortened to GGS, helps lenders say yes to viable businesses they might otherwise turn down for lack of security.
It is not a grant and the government does not lend the money: an accredited lender makes the loan in the normal way and the British Business Bank guarantees part of it to that lender. This page explains how the scheme works in practice and which kinds of lender on our panel offer it. For the background to the scheme, see our guide to the Growth Guarantee Scheme.
Smart Funding Solutions is a broker. We search the market, including the GGS lenders on our panel, and compare a GGS facility with ordinary loans, asset finance and regional funds so you can see which is the better fit.
A government guarantee is not the same as free money, and you still repay the full amount. If you are weighing public support more widely, our guide to business grants vs business loans explains when a grant is worth chasing and how the two are often combined.
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Types of GGS-backed finance
Not every lender offers every product under the scheme. The British Business Bank lists these facility types:
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Term loans
A lump sum from £25,001, currently repaid over three months to six years. The British Business Bank has announced terms of up to ten years for term loans and asset finance, which it is introducing with accredited lenders. Most GGS lenders on our panel offer unsecured business loans under the scheme, typically up to £250,000.
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Asset finance
Learn moreHire purchase and leasing for equipment and vehicles, from £1,000, currently over three months to six years, with up to ten years announced. On our panel, Investec Asset Finance offers GGS-backed asset finance from £50,000.
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Invoice finance and asset-based lending
Facilities against your debtor book and other assets, from £1,000 and over three months to three years. See our guide to invoice finance for how these work.
-
Overdrafts
Overdraft-style facilities from £25,001, over three months to three years, for businesses whose cash flow moves up and down through the year.
How the Growth Guarantee Scheme works
According to the British Business Bank, the scheme launched with accredited lenders on 1 July 2024 as the successor to the Recovery Loan Scheme. Its main features are:
- A guarantee to the lender: the lender receives a 70% government-backed guarantee on the outstanding balance, which it can claim only after its normal recovery process.
- Full liability for the borrower: your business remains 100% liable for the debt. The guarantee does not reduce what you owe.
- Personal guarantees at the lender's discretion: lenders may take personal guarantees in line with their normal practice, but your principal private residence cannot be used as security.
- Facilities up to £2 million: generally up to £2 million per business group. Businesses within the scope of the Northern Ireland Protocol can borrow up to £1 million, and sectors with reduced aid limits, such as agriculture and fisheries, have lower caps.
- Turnover: open to businesses with turnover of up to £45 million; the British Business Bank has announced a rise to £54 million as the changes are introduced with lenders.
- The lender decides: each accredited lender applies its own credit checks and makes the final decision.
The British Business Bank updates the scheme from time to time, so always check its page for the current terms.
Who can get a GGS loan
The British Business Bank says the scheme is for smaller UK businesses that trade in the UK, have a viable proposition and are not in financial difficulty or insolvency proceedings. Most must earn more than half of their income from trading, and the business must confirm the facility will not take it over its subsidy limits. On top of that, each lender has its own rules on trading history, sector and location, which is where comparing lenders matters. A business with one year of accounts and a business with five will be suited to different GGS lenders.
Personal guarantees and security under GGS
A common misunderstanding is that a government guarantee means no personal guarantee. The GGS lenders on our panel generally ask for a personal guarantee from the directors, and some also take a debenture over the company. What the scheme does protect is your main home: it cannot be taken as security for a GGS facility. Before signing, read our guide to personal guarantees, and consider whether personal guarantee insurance is worth having.
Underwriting
What GGS lenders look at
01
Trading history and filed accounts, with management accounts if the year end was some time ago.
02
Affordability: whether profits and cash flow cover the repayments with room to spare.
03
What the money is for, especially for growth, equipment or an acquisition.
04
Business and director credit history.
05
Existing borrowing and any charges already registered against the company.
06
Where the business is based, for regional lenders.
Checklist
Documents to have ready
- Your last two or three years of filed accounts.
- Recent management accounts and a forecast.
- The last three to six months of business bank statements.
- A short explanation of what the funding is for.
- Details of existing loans and finance agreements.
Side by side
Compare your options
How the main business finance structures work. Lenders set their own terms, so treat this as a guide to the questions to ask.
| Option | How you repay | Security | Often used for |
|---|---|---|---|
| Unsecured business loan | Fixed instalments, usually monthly | No charge over assets; a personal guarantee is usually required | Growth, stock, tax bills and cash flow |
| Secured business loan | Fixed instalments, often over a longer term | A charge over property or other assets | Larger sums, property and refinancing |
| Revolving credit facility | Interest on what you draw; repay and redraw | Varies by lender and case | Recurring or uneven cash flow gaps |
| Merchant cash advance | A share of future card takings | No charge over assets | Card-taking businesses with uneven months |
| Asset finance | Regular payments over the life of the asset | The asset being financed | Equipment, vehicles and machinery |
| Invoice finance | Settled as customers pay their invoices | Your unpaid invoices | Businesses waiting on customer payment |
General information only. Every lender has its own criteria, and all finance is subject to status.
GGS lenders on our panel
Lenders on our panel that offer GGS-backed finance include the following. The figures are each lender's own GGS terms as we hold them, and every lender makes its own credit decision.
| Lender | GGS finance | Amount | Points to know |
|---|---|---|---|
| Funding Circle | Term loans | £25,001 to £250,000 | Limited companies with two years' trading |
| Kingsway Finance | Term loans | £50,000 to £250,000 | England and Wales; homeowner personal guarantee |
| Finance for Enterprise | Term loans | £25,001 to £250,000 | Regional: Yorkshire and the Humber, the Midlands, the North East and the North West; three years of accounts |
| Investec Asset Finance | Asset finance | From £50,000 | Equipment and vehicles under the scheme |
How we arrange a GGS loan
- Check the fitwe confirm what you need and whether a GGS facility, an ordinary loan or a regional fund suits it best.
- Approach the right lenderswe go to GGS lenders on our panel whose size, sector and location rules match your business.
- Compare offerswe set out cost, term, guarantees and security side by side.
- See it throughwe handle lender questions through to drawdown.
Lenders make every credit decision. It is free to enquire; any broker fee is disclosed separately before you proceed. Start with our Instant Quotes tool to compare lenders in minutes.
FAQs
Questions clients ask
Is a Growth Guarantee Scheme loan a government loan?
No. The loan comes from an accredited private lender, such as a bank or specialist lender. The British Business Bank gives that lender a 70% guarantee on the outstanding balance, which the lender can claim only after its normal recovery process. Your business repays the lender in the usual way.
Does the government guarantee protect me if my business cannot repay?
No. The guarantee protects the lender. Your business remains 100% liable for the debt, and any personal guarantee you give can still be called on. The one protection for owners is that your principal private residence cannot be taken as security for a GGS facility.
Can I get a GGS loan without a personal guarantee?
The scheme leaves personal guarantees to each lender, and the GGS lenders on our panel generally ask for one. If avoiding a personal guarantee is important to you, our page on business loans without a personal guarantee explains the alternatives.
How much can I borrow under the Growth Guarantee Scheme?
The scheme generally allows facilities up to £2 million per business group, with lower limits for some sectors. In practice each lender sets its own range: most GGS term loans on our panel run to £250,000, while GGS-backed asset finance on our panel starts at £50,000.
Can a start-up get a GGS loan?
The scheme itself does not require a set trading period, but most lenders offering it do. Those on our panel typically look for at least one to three years of trading and filed accounts. Newer businesses may find start-up loans a better first step.
Lender reviews
Lenders we compare for Growth Guarantee Scheme loans
Independent write-ups of lenders on our panel that offer this type of finance. Smart Funding Solutions is a broker and is not part of any lender listed. See all lender reviews.
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