The British Business Bank has launched the Growth Guarantee Scheme, the successor to the Recovery Loan Scheme. This programme, which helps smaller businesses in the UK access finance, opened for applications through accredited lenders on 1 July 2024. The scheme offers access to term loans, overdrafts, asset finance, invoice finance, and asset-based lending.

Key Features of the Growth Guarantee Scheme

A key feature of the Growth Guarantee Scheme is the 70% government-backed guarantee provided to lenders. While this guarantee supports the lender, the borrower remains 100% liable for the debt.

Eligibility Criteria

To be eligible for the Growth Guarantee Scheme, businesses must meet the following criteria:

  • The business (or group) must have a turnover of less than £45 million.
  • Trading activity must be carried out in the UK, with more than 50% of the business’s income derived from trading activity.
  • The lender must deem the business proposition for the finance as viable.
  • The business must not be in financial difficulty, including involvement in insolvency proceedings.
  • The business cannot exceed the maximum amount of subsidy allowed from all sources, as the assistance is considered a “subsidy.”

Finance Facilities

The Growth Guarantee Scheme covers finance facilities of up to £2 million. Borrowers within the scope of the Northern Ireland Protocol are generally limited to £1 million.

If you need help raising finance for your business or determining the most suitable type of finance for your needs, please feel free to contact us. We are here to assist you.

For more information about the Growth Guarantee Scheme, visit: https://www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme