Last updated: 04 Nov 2026
GROWTH GUARANTEE SCHEME
Growth Guarantee Scheme loans available
✅ 70% government backed finance
✅ Get up to £2 million
✅ Launched 1 July 2024
✅ Available until March 2030
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What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme (GGS) is a UK Government initiative that launched on 1 July 2024, replacing the Recovery Loan Scheme. The Growth Guarantee Scheme is designed to help UK businesses access funding they might not otherwise qualify for by reducing the lender’s risk.
The Growth Guarantee Scheme exists to continue to support small businesses across the UK, offering funding options from £1,000 and up to £2 million through term loans, invoice finance, asset finance, overdrafts and asset based lending. With 70% of the loan guaranteed by the government, GGS is designed to make finance more accessible for small businesses.
Whether you’re looking to expand, invest in new equipment, or strengthen cash flow, the Growth Guarantee Scheme could provide the financial support your business needs.
Key facts about the Growth Guarantee Scheme
Available from July 2024 to March 2030
£1,000 and £2 million as invoice finance or asset finance
£25,001 to £2 million available per business group
Personal guarantees likely to be required
Is my business eligible for the Growth Guarantee Scheme?
To be eligible, your business needs to:
Be trading in the UK.
Have an annual turnover of no more than £45 million, rising to £54 million as lenders roll out the 2026 changes.
Make more than 50% of its turnover from trading activity, which excludes rental income. Registered charities and further education colleges are exempt from this rule.
Not be a bank, building society, insurer, public sector body or state funded primary or secondary school.
Not be a business in difficulty, including being in relevant insolvency proceedings.
You may also need a good business credit score to qualify.
The decision to offer a Growth Guarantee Scheme is always at the lender's discretion. Lenders will only choose to lend on the scheme if there is a clear affordability shown to support the loan and they are unable to offer a facility on equivalent or better terms without the guarantee. If the business meets their normal lending criteria, they must offer the facility on their usual commercial lending terms, instead of using the Growth Guarantee Scheme.
What types of business finance are available under the Growth Guarantee Scheme?
- More term loans
Term loans
A straightforward cash injection you pay back over time. You might use a loan for R&D, moving to a new premises, or refinancing an existing loan. Term loans are available up to 10 years.
- More invoice finance
Invoice finance
Invoice finance enables you to speed up your business cash flow by getting an advance on money owed to you in invoices, without waiting for debtors to pay you. Invoice finance facilities are available up to 3 years.
- More asset finance
Asset finance
A loan designed for purchasing assets for your business. You might upgrade your equipment, tech, or invest in machinery. Asset based lending facilities are available up to 10 years.
- More overdrafts
Overdraft
Business overdrafts let you spend beyond your business account balance, maybe for a new project which requires marketing investment or a bargain stock purchase. Overdraft facilities are available up to 3 years.
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How does the government guarantee work, and who repays the loan?
Under the Growth Guarantee Scheme, the government guarantees 70% of the outstanding balance to the lender. If your business can't repay, the lender can recover 70% of what's left once its normal recovery process is complete, which makes lenders more willing to approve businesses that might not otherwise meet their criteria.
The guarantee protects the lender, not you. Your business remains 100% liable for the debt, and repayments and interest usually start from month one, following the schedule in your loan offer.
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What changed in the Growth Guarantee Scheme in 2026?
In July 2026 the government announced a £6.5bn expansion of the scheme, expected to support an estimated 33,000 businesses, and the Autumn Budget 2026 confirmed the funding. Accredited lenders are now rolling out two main changes.
Growth Guarantee Scheme rule | Before | After |
|---|---|---|
Maximum annual turnover | £45 million | £54 million |
Maximum term on loans up to £1.1 million | 6 years | 10 years |
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How can I apply for the Growth Guarantee Scheme?
Applications for the Growth Guarantee Scheme are open until March 2030. To apply, simply sign up, or login to your Capitalise for Business account. From here you can see how much you could be eligible to borrow and start your funding application. Alongside dedicated support from a funding specialist, you will be able to apply to multiple lenders in just one application.
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What documents do you need for a Growth Guarantee Scheme loan?
Lenders may ask for additional information, but these documents are typically needed to apply for a Growth Guarantee loan:
Apply for a Growth Guarantee Scheme loan today
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Page last reviewed on by Paul Surtees