Loans Hub · Government-Backed Lending
Government Growth Scheme Loans
Access the British Business Bank Growth Guarantee Scheme — 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.
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.
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
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.