Loans Hub · Government-Backed Lending
Growth Guarantee Scheme (GGS) Loans
The government growth scheme for UK small businesses — British Business Bank-backed facilities up to £2 million with a 70% government guarantee to the lender, helping viable UK businesses borrow on stronger terms.
Growth Guarantee Scheme repayment estimator
Illustration only. The 70% government guarantee is to the lender; you repay 100% of the facility. Rates are set by the accredited lender.
What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme (GGS) is the UK government’s flagship small-business lending programme, delivered by the British Business Bank through a network of accredited lenders. It succeeded the Recovery Loan Scheme and is designed to improve the terms on which smaller businesses can borrow to invest and grow.
The government provides the lender with a 70% guarantee on each facility. That guarantee reduces the lender’s risk and helps viable businesses get a “yes” they might otherwise miss — but, importantly, the borrower always remains 100% liable for repaying the debt. The guarantee protects the lender, not the borrower.
Is the Growth Guarantee Scheme still running?
Yes — the Growth Guarantee Scheme is open and lending now. It launched on 1 July 2024 as the successor to the Recovery Loan Scheme, and the government has announced an extension that keeps the scheme running to 2030, giving businesses long-term certainty that government-backed facilities will remain available.
One common point of confusion: people sometimes search for a “growth grant scheme”. The GGS is not a grant — it is a loan guarantee scheme. The money is borrowed from an accredited commercial lender and must be repaid; the government’s role is to guarantee 70% of the facility to that lender so more viable businesses get approved.
How much you can borrow and on what terms
The scheme supports a range of finance products, not just term loans:
| Facility type | Amount | Typical term |
|---|---|---|
| Term loans | £1,000 – £2m | Up to 6 years |
| Asset finance | £1,000 – £2m | Up to 6 years |
| Overdrafts | £1,000 – £2m | Up to 3 years |
| Invoice finance | £1,000 – £2m | Up to 3 years |
Pricing is set by the individual lender, and personal guarantees may be required — but your principal private residence cannot be taken as security under the scheme. Estimate indicative repayments with the calculator above.
Who is eligible for GGS funding?
To use the Growth Guarantee Scheme your business generally must:
- Be carrying out trading activity in the UK
- Have a turnover of no more than £45 million a year
- Be a viable business in the lender’s assessment
- Not be in collective insolvency proceedings
Most sectors are eligible. The scheme is open to both established firms and newer businesses, making it a strong alternative when a standard unsecured business loan isn’t the right fit. A small number of restrictions apply, which an accredited lender will confirm.
GGS vs the Recovery Loan Scheme: what changed?
The Growth Guarantee Scheme carries the Recovery Loan Scheme’s core design forward: a 70% government guarantee to accredited lenders, the same £2m headline cap and the same broad facility types. If you had an RLS facility, it continues on its existing terms — GGS only applies to new lending.
The important shift is purpose. The RLS was pandemic-era support; the GGS is a permanent-feeling growth programme, now extended to 2030, aimed at investment, expansion and working capital rather than recovery. Lender appetite has also broadened, with more alternative and specialist lenders accredited alongside the high-street banks.
Accredited lenders — and how a broker helps
Only lenders accredited by the British Business Bank can offer GGS facilities. The panel spans high-street banks, challenger banks, alternative finance providers and specialist asset and invoice finance houses — and each one applies its own credit appetite, pricing and sector preferences on top of the scheme rules.
That is why two lenders can look at the same application and give different answers. As a whole-of-market broker, we know which accredited lenders are actively funding businesses like yours right now, so you apply where you are most likely to get a “yes” on the best terms — instead of approaching lenders one by one and stacking up credit searches.
Personal guarantees under the GGS
Accredited lenders can ask for a personal guarantee on a GGS facility, just as they can on ordinary commercial lending — it is decided lender by lender and tends to depend on facility size and business strength. The scheme adds one firm protection: your principal private residence cannot be taken as security for a GGS facility.
If a personal guarantee is a sticking point for you, tell us early. PG requirements differ meaningfully between accredited lenders, and we can target the ones whose requirements fit your position — or look at unsecured borrowing alternatives alongside the scheme.
Pros and cons at a glance
Advantages
- Government guarantee can unlock a “yes”
- Borrow up to £2m across products
- Your home can’t be taken as security
- Longer terms — up to 6 years
- Open to newer businesses
Things to weigh up
- You remain 100% liable for the debt
- Lender still assesses affordability
- Personal guarantees may apply
- Only via accredited lenders
How to apply for the Growth Guarantee Scheme
You don’t apply to the government directly — you apply through an accredited lender. The process looks like this:
- Check eligibility and decide how much you need and over what term.
- Prepare your paperwork — recent accounts, bank statements and a short use-of-funds summary.
- Apply via an accredited lender or a broker who works with several of them.
- The lender assesses affordability and viability, then draws down the government guarantee and funds the facility.
We match your requirements to accredited lenders most likely to approve your application, saving you from approaching them one by one.
It takes under a minute — and enquiring never affects your credit score.
Frequently asked questions
Who is eligible for the Growth Guarantee Scheme?
UK businesses with turnover up to £45 million that carry out trading activity in the UK and are judged viable by the lender. Most sectors qualify, established and newer businesses alike, provided the business is not in collective insolvency proceedings.
Is the Growth Guarantee Scheme still running?
Yes. The scheme launched on 1 July 2024, replaced the Recovery Loan Scheme, and is open for new applications through accredited lenders now. The government has announced an extension keeping it running to 2030.
Is the Growth Guarantee Scheme extended to 2030?
Yes — the government has announced an extension of the Growth Guarantee Scheme to 2030, giving smaller businesses long-term certainty that government-backed facilities will remain available beyond the scheme's original window.
Is the Growth Guarantee Scheme a grant?
No. Despite searches for a "growth grant scheme", the GGS is a loan guarantee scheme, not free money. You borrow from an accredited commercial lender and repay in full; the government guarantees 70% of the facility to the lender, not to you.
Is the Growth Guarantee Scheme a government loan?
Not quite. The loan is provided by an accredited commercial lender, and the government guarantees 70% of it to that lender. You, the borrower, remain fully responsible for repaying 100% of the debt.
What replaced the Recovery Loan Scheme?
The Growth Guarantee Scheme replaced the Recovery Loan Scheme. It works on the same core principle — a partial government guarantee to lenders — and supports loans, overdrafts, invoice finance and asset finance.
How much can my business borrow under GGS?
Facilities run from £1,000 up to £2 million per business group. The exact amount depends on the lender’s affordability assessment and your trading position.
Can a new business use the Growth Guarantee Scheme?
Yes. The scheme is open to newer businesses as well as established ones, provided the lender judges the business viable and it meets the UK-trading and turnover criteria.
Will I need to give a personal guarantee?
Lenders may require a personal guarantee, but under the scheme your main home cannot be taken as security. Guarantee requirements vary by lender and facility size.
Who runs the Growth Guarantee Scheme?
The scheme is administered by the British Business Bank on behalf of the UK government. Lending itself is delivered by commercial lenders accredited to offer the scheme.
What can GGS funding be used for?
It supports working capital and investment for growth — including equipment, expansion, hiring and managing cash flow. The funds must be used for a legitimate business purpose in the UK.
How long does a GGS application take?
Timescales depend on the lender and the facility, but providing complete, up-to-date accounts and bank statements upfront is the single biggest factor in getting a fast decision.
Can HMRC give you a loan?
HMRC does not lend money to businesses, but it can agree a Time to Pay arrangement to spread a tax bill, and specialist lenders offer VAT and tax loans to cover bills upfront. For growth and investment, the government-backed Growth Guarantee Scheme provides funding through accredited lenders — the government guarantees part of the loan rather than lending directly.
Is there a government loan for a limited company?
Yes — limited companies can access the government-backed Growth Guarantee Scheme through accredited lenders, and newer companies may qualify for a Start Up Loan. In both cases a commercial lender provides the funds; the government's role is to guarantee or fund the scheme, and your company remains responsible for repaying the debt.