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Growth Guarantee Scheme (GGS) ​

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The Growth Guarantee Scheme (GGS) is the official successor to the Recovery Loan Scheme (RLS).  Launched in July 2024 and recently extended through to 31 March 2030, it is designed to help UK small and medium-sized enterprises (SMEs) access the finance they need to invest and grow.

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Under the scheme, the government provides a 70% guarantee to participating lenders, giving them the confidence to approve finance facilities for businesses that might otherwise fall just outside their standard lending criteria.

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Key Features of the Scheme​

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  • Facility Limits:  Businesses can typically borrow between £25,001 and £2 million.

  • Flexible Products:  Includes business loans, asset finance, invoice finance, and asset-based lending.

  • Repayment Terms:  Up to 6 years for business loans & asset finance. (Up to 3 years for invoice finance).

  • Use of Funds:  Managing cash flow, purchasing assets/equipment, hiring staff, or expanding premises.

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Why use the GGS?

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The Growth Guarantee Scheme is particularly helpful for businesses that have the potential to grow but lack the collateral or credit history required for traditional commercial loans.  It can help bridge the gap between a "no" and a "yes" from your lender, helping you secure the assets/capital needed to take your business to the next level.

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Eligibility Criteria

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To be eligible for the Growth Guarantee Scheme, your business must:

  • Be UK-based: Carry out more than 50% of your trading activity within the UK.

  • Turnover Limit:  Have an annual group turnover of no more than £45 million.

  • Be Viable:  Demonstrate that the business has a viable borrowing proposal and can afford the repayments.

  • Not be "In Difficulty": The business must not be undergoing insolvency proceedings.

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Note on Previous Support:  If you previously accessed COVID-19 support schemes (like BBLS, CBILS, or RLS), you are still eligible to apply for GGS, though your previous borrowing may impact the maximum amount you can receive under current subsidy limits.

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Important Considerations​

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  • 100% Liability:  While the government provides a 70% guarantee to the lender, the borrower remains 100% liable for the debt.

  • Personal Guarantees:  Lenders may still request personal guarantees in line with their standard commercial practices. However, a borrower’s primary residential property cannot be taken as security.

  • Subsidy Limits:  Because the scheme provides a benefit backed by the government, it is classified as a subsidy. You will need to confirm that the new facility won't exceed your allowed subsidy limit over a rolling three-year period.

  • Underwriting:  All quotes, proposals and offers are subject to acceptance.

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What Next

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To find out more information on how GGS could help your business you can contact our dedicated Sales Managers on 0161 456 4242 or use the Contact Us form.  One of our team will call you for an overview and to discuss the scheme in full.

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