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

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, and overdrafts. 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 carrying out trading activity in the UK

  • Have an annual turnover of no more than £45 million

  • Generate at least 50% of revenue from ‘trading activities’, this excludes rental income (registered charities and further education colleges are exempt from this requirement)

  • Not be a bank, building society, public sector body or state funded primary or secondary school 

  • Not be a business in difficulty, including not 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?

  • 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 from 3 months up to 6 years.

    More term loans

  • 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 from 3 months up to 3 years.

    More invoice 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 from 3 months up to 6 years.

    More asset finance

  • 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 from 3 months up to 3 years.

    More overdrafts

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.

What documentation will you need to provide to apply for a Growth Guarantee loan?

Lenders may ask for additional information, but these documents are typically needed to apply for a Growth Guarantee loan:

  • Last two sets of filed accounts

  • Past 12 months of bank statements (PDF format, no older than seven days)

  • Shareholder and director details (name, DOB, and home address)

  • Current company debt position (loans, facilities, etc.)

  • Updated management accounts

What does it mean if a loan is government guaranteed?

A government guaranteed loan means the government provides a safety net for the lender. Under the Growth Guarantee Scheme, the government guarantees 70% of the outstanding balance of the facility. This means that if the business is unable to repay, the government will cover 70% of the outstanding balance, reducing the lender’s risk after they have completed their normal recovery process. This backing makes it easier for lenders to offer loans to businesses that might not otherwise meet their eligibility criteria. However, it's important to note that the business remains fully responsible for repaying the loan in full.

Repaying your Growth Guarantee Scheme loan

Repayments and interest for your Growth Guarantee Scheme loan start from month one, with your specific schedule clearly laid out in your loan offer. While the UK Government guarantees 70% of the loan to the lender, your business remains fully responsible for paying the balance in full.

A Growth Guarantee Scheme case study

We’ve already helped numerous businesses secure GGS loans to support their growth and overcome financial barriers.

One great example is a community interest company dedicated to improving mental health support in schools and community spaces. They approached Capitalise to fund their marketing efforts and boost working capital. After submitting their application, they were approved for £74,000 on the same day, empowering them to move forward confidently with their mission.

Apply for a Growth Guarantee Scheme loan today

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