Growth Guarantee Scheme
A British Business Bank scheme that gives accredited lenders a 70% government guarantee, so they can offer loans, overdrafts, asset finance and invoice finance to smaller businesses they might otherwise turn down.
- Secured on assets
- Personal guarantee likely
How it works
The Growth Guarantee Scheme (GGS) launched on 1 July 2024. You apply to an accredited lender, not to the government.
- The government guarantees 70% of the outstanding balance to the lender. Your business is still 100% liable for the debt.
- Lenders should only use GGS if they cannot offer the same or better terms without it.
- It covers term loans, overdrafts, asset finance, invoice finance and asset-based lending.
- You can borrow up to £2 million per business group (£1 million for groups within scope of the Northern Ireland Protocol). Minimum sizes start at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts.
- Term loans and asset finance run for up to 6 years. Overdrafts and invoice finance run for up to 3 years.
Upsides and downsides
Upsides
- Can help you borrow when a lender would otherwise say no
- Covers several types of finance, not just loans
- Lenders cannot take your main home as security
- Upfront lender fees are capped at 5%
Downsides
- You are still 100% liable. The guarantee protects the lender, not you
- Interest rates are set by the lender and are not subsidised
- Personal guarantees can still be required
Risks
- Losing assets given as security, or being liable under a personal guarantee
- Taking on debt the business cannot service
What it costs
- How it is priced
- Interest and fees set by the lender. Upfront lender fees (including broker fees paid through the lender) are capped at 5%
- Costs that are easy to miss
- Broker fees charged outside the lender relationship are not capped. Check them before you agree
- Personal guarantees may be taken if that is the lender's normal practice
Per business group. Minimum £1,000 for asset and invoice finance, £25,001 for term loans and overdrafts.
Have a quote? True cost of a loan: work out the APR-equivalent and total cost
Does it fit?
Could fit when
- You are a viable UK business with turnover up to £45 million
- A lender is unable to offer you finance on normal terms
Unlikely to fit when
- Your business is in financial difficulty or insolvency
- You can already get the same terms without the scheme
- Your turnover is more than £45 million (the limit applies to the whole group)
- You are a bank, building society or insurer (these are excluded)
Who can use it
- Business types: Sole trader, Partnership, Private limited company, LLP, Public limited company, Community interest company, Co-operative or community benefit society, Charity
- Needs sales (revenue)
- UK trading business with turnover of no more than £45 million (group basis)
- More than 50% of turnover from trading activity (charities and further education are exempt)
- The lender must judge the proposal viable
- Not a business in difficulty or in insolvency proceedings
Not available for: Banks and building societies; Insurers and reinsurers; Public-sector bodies; State-funded primary and secondary schools; Certain mining and quarrying activities.
Am I ready?
What a provider is likely to ask for. Tick what you have. Your ticks stay in this browser and nothing is stored. Checklist for all government-backed and community lending
0%
0 of 4 ticked
- Accounts and management information
- Cash flow forecast
- Group structure
Regulation and protections
Run by the British Business Bank through accredited lenders. The guarantee does not reduce your liability. Many smaller businesses can take an unresolved complaint about a bank or other FCA-authorised lender to the Financial Ombudsman Service.
Types of provider: High-street and challenger banks accredited for GGS; Asset finance and invoice finance providers accredited for GGS; Specialist and community lenders accredited for GGS.
Also consider
Sources
- British Business Bank: Growth Guarantee Scheme FAQs · checked 7 October 2026
- Financial Ombudsman Service (small business): Who we can help · checked 7 October 2026