What is the Growth Guarantee Scheme?

In the Spring Budget 2024, Chancellor Jeremy Hunt announced that the Recovery Loan Scheme will be extended until 31 March 2026 and renamed as the Growth Guarantee Scheme. 

As the third iteration of the Recovery Loan Scheme is due to end in June 2024, the Growth Guarantee Scheme will provide continued support for UK small businesses by providing a range of finance options. 

While further details are yet to be announced, the terms of the scheme will remain the same. This means that lenders offering the scheme will still receive a 70% government backed guarantee on loans up to £2 million. The scheme aims to provide more businesses with access to the finance they need to grow and thrive.  

Key facts

Scheme launches July 2024

10+ RLS lenders on Capitalise

Available until March 2026

Loan amounts up to £2 million

When will the Growth Guarantee Scheme be available?

Following the end of the Recovery Loan Scheme on 30 June 2024, the Growth Guarantee Scheme will come into place on 1 July 2024 and lasts until 31 March 2026. 

Will my business be eligible for the Growth Guarantee Scheme?

The terms of the Growth Guarantee Scheme will not differ from the existing Recovery Loan Scheme. This means that to be eligible, your business will need to:

  • Generate at least 50% of revenue from ‘trading activities’, this excludes rental income
  • Be UK based 
  • Have an annual turnover of no more than £45 million
  • Not be a bank, building society, public sector body or state funded primary or secondary school 

Can I still get a recovery loan?

You’ll still be able to apply for the Recovery Loan Scheme up to 30 June 2024. 

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’ll be able to apply up to four lenders in just one application.

You may be able to apply for funding using the Growth Guarantee Scheme from 1 July 2024.

frequently asked questions

As far as we know, the Growth Guarantee scheme will have the same terms as the previous iterations of the Recovery Loan Scheme. The core difference between the two is that the Recovery Loan Scheme will only be available until 30 June 2024. After this date, the Growth Guarantee Scheme will be available. 

At Capitalise, we work with 100+ UK lenders to help your business find funding best suited to your needs. 

Working with more than 10 lenders accredited on the Recovery Loan Scheme, when you search for funding with Capitalise we can help you get a recovery loan.

With a Recovery Loan, term loans and asset finance facilities are available for up to six years. Business overdrafts and invoice finance are available on term lengths for up to three years.