Government-backed scheme
The Growth Guarantee Scheme: a guarantee the lender holds, not you.
The Growth Guarantee Scheme gives an accredited lender a 70% government-backed guarantee on a facility of generally up to £2m. You apply to the lender, the lender decides, and your business stays liable for all of the debt. In July 2026 the government announced more capacity, a higher turnover limit and longer terms. When this page was written, the British Business Bank said those changes were still being put in place with lenders.
What it is
A guarantee behind an ordinary facility
The Growth Guarantee Scheme (GGS) replaced the Recovery Loan Scheme and launched with accredited lenders on 1 July 2024 (British Business Bank). It covers term loans, overdrafts, asset finance, invoice finance and asset-based lending, though not every lender offers every product. The British Business Bank administers it on behalf of the Secretary of State for Business and Trade (British Business Bank, Growth Guarantee Scheme).
The lender gets a 70% government-backed guarantee on the facility. That is the whole mechanism. It makes the lender more willing to lend to a viable business it would otherwise turn down or lend less to, for example one without enough security to cover the whole facility. The scheme rules also say that if a lender can offer a commercial loan on better terms, it will do so. So GGS is a route to a yes, not a discount.
The guarantee isn't yours. The lender claims it only after its normal recovery process, against the outstanding balance, and the business stays liable for 100% of the debt. Treat a GGS facility as ordinary borrowing when you work out whether the business can afford it.
Current terms
What the scheme offers today
These are the terms on the British Business Bank's scheme page, which it says still apply while the July 2026 changes are put in place (source):
- Facility size. Generally up to £2m per business group, or up to £1m per group for borrowers in scope of the Northern Ireland Protocol. Minimums start at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts.
- Term. Term loans and asset finance from three months up to six years. Overdrafts, invoice finance and asset-based lending from three months up to three years.
- Pricing. Set by the lender for each proposal. It reflects the benefit of the guarantee and the fee the lender pays for it.
- Personal guarantees. At the lender's discretion. A principal private residence can't be taken as security.
- Earlier scheme borrowing. A CBILS, CLBILS, Bounce Back or Recovery Loan Scheme facility taken before 30 June 2024 doesn't rule a business out, but it may reduce the maximum it can borrow.
- Subsidy. The support counts as a subsidy to the borrower, and there is a limit on how much a business and its group can receive over any rolling three-year period, so earlier subsidies can reduce the amount available.
The July 2026 expansion
What was announced, and what it changes
The British Business Bank says the Chancellor announced the expansion on 12 July 2026, and HM Treasury published its press release on 13 July 2026. The two describe it slightly differently, so here is what each says:
- More lending capacity. The British Business Bank describes a £6.5bn uplift, unlocking a further £6.5bn of market lending over the next four years and helping an estimated 33,000 businesses (British Business Bank news release). HM Treasury says the scheme will support an additional £2 billion of SME lending a year by 2028/29, taking the total to £3.35 billion a year from £1.35 billion (HM Treasury press release).
- Higher turnover limit. Eligibility rises from £45m to £54m of annual turnover. Both sources say this.
- Longer terms. The British Business Bank says facility terms of up to ten years for term loans and asset finance. HM Treasury says the maximum loan term rises from six to 10 years for loans of up to £1.1 million. If the longer term matters to your plan, ask the lender which limit it is applying.
None of this was in force on the day this page was written. The British Business Bank's scheme page said it was working with accredited lenders to put the changes in place over the coming weeks and that the scheme remained open under its existing terms, and its eligibility list still showed the £45m limit. The GOV.UK business finance support entry for the scheme also still showed £45m (GOV.UK).
Eligibility
The basic tests
- Turnover. Up to £45m under the current terms, on a group basis where the business is part of a group, rising to £54m once the change is live.
- Trading in the UK. The business must carry out trading activity in the UK and, for most businesses, generate more than 50% of its income from trading.
- Viable. The lender must consider the business a viable proposition, and the business has to be able to afford the extra debt.
- Not in difficulty. The business must not be a business in difficulty, which includes not being in relevant insolvency proceedings.
- Within subsidy limits. The borrower confirms in writing that the facility won't take it over the maximum subsidy it can receive.
The finance can be used for any legitimate business purpose, including managing cash flow and investment (source).
How to access it
Through an accredited lender, and only there
There is no application to the government. You apply to one of the lenders accredited for the scheme, which the British Business Bank lists (accredited lenders). The lender runs its standard credit and fraud checks and decides whether to lend and whether to use the guarantee. Different lenders offer different products under the scheme, so the one that fits depends on what you need: a term loan for an investment, or a working capital facility such as invoice finance or asset-based lending.
For an established business
Where it tends to matter
- The business is sound but short of security. This is the gap the guarantee is designed for. It doesn't change the credit case: the lender still has to believe the business can repay.
- Turnover sits near the limit. The test is on a group basis. A business whose own turnover is under the limit but whose group is over it may not qualify, and the move to £54m may bring some groups inside it.
- There is already a debenture in place. A GGS facility from a new lender is still new secured borrowing from that lender's point of view. If your existing lender holds an all-assets debenture, expect the same consent and priority questions as any other new facility. See debenture borrowing.
- Longer terms would change affordability. Spreading a term loan or asset finance over ten years rather than six lowers the repayments. Until lenders confirm they are offering the new terms, plan on six.
Limits of this page
Scheme terms are set by the British Business Bank and can change, and each accredited lender decides its own pricing, products and appetite. This page summarises the published scheme terms, not any lender's offer. Established Finance is an introducer, not a lender, and doesn't provide GGS facilities itself. This is information rather than advice.
Talk it through
Need another perspective?
You may already know which facility you think fits. The more valuable question is whether it's actually the right structure for what's happening in the business. We'll review the situation before suggesting possible routes. It costs nothing to have that conversation.
Thank you. It's with our team now.
A person reads every enquiry and we'll come back to you with what we think the right next step is. No obligation at any point.
What happens next
- A person on our team reads it. No need to know which facility you want first.
- If we can help, we may introduce you to a provider and tell you who they are.
- No charge and no obligation at any point. You decide whether to go further.
Adam Parker
Founder of Muswell Rose Consulting Ltd, which trades as Established Finance · former Managing Director of Penny, an invoice finance business, working in mortgages, commercial finance and fintech lending since 2010 (career history).
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Practical questions
Before you get in touch
Does the government guarantee protect my business if it cannot repay?
No. The guarantee is to the lender. The British Business Bank says the lender claims it against the outstanding balance only after completing its normal recovery process, and the borrower always remains 100% liable for the debt.
Can a lender take a personal guarantee on a Growth Guarantee Scheme facility?
Yes, at the lender's discretion and in line with its normal commercial lending practice. The scheme rules say a principal private residence cannot be taken as security.
Our turnover is between £45m and £54m. Can we apply now?
The higher £54m limit was announced in July 2026, but the British Business Bank's scheme page still listed £45m as the turnover limit and said it was working with accredited lenders to put the changes in place. Ask the accredited lender whether it is lending on the new terms yet before you rely on them.
Do we apply to the British Business Bank?
No. The British Business Bank administers the scheme on behalf of the Secretary of State for Business and Trade, but the facility is provided by an accredited lender, which runs its own credit and fraud checks and makes the decision.
How long does it take?
It varies by facility, so there isn't one number that fits every case. Some drawdowns against an existing facility complete within a day or two; arranging something new from scratch usually takes longer. We'll give you a realistic timeline once we understand your situation.
What information do I need?
To start, just a description of what’s actually happening in the business. If it progresses, the provider will ask for the usual things: recent accounts, a sense of turnover and trading history, and details of the specific need.