Growth Guarantee Scheme (GGS)

The successor scheme to the Recovery Loan Scheme, The Growth Guarantee Scheme (GGS) launched in July 2024 and is designed to support access to finance for UK small businesses as they look to invest and grow.

Growth Guarantee Scheme-backed facilities are provided at the discretion of Business Enterprise Fund (BEF). We are required to undertake our standard credit and fraud checks for all applicants.

• Up to £2m business group: The maximum amount of a facility provided under the scheme is generally £2m per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1m (or such other sum as notified from time to time by us to the lender in accordance with the relevant legal agreement(s)) per business group for Northern Ireland Protocol borrowers. Minimum facility sizes vary, starting at £25,001 for term loans;
• Wide range of products: Growth Guarantee Scheme supports term loans from Business Enterprise Fund (BEF). Overdrafts, asset based lending and invoice finance facilities are available for additional lenders. Not all lenders will be able to offer all products;
• Term length: Term loans are available for up to five years;
• Access to multiple schemes: Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2024 are not prevented from accessing Growth Guarantee Scheme, but borrowing under these schemes may reduce the maximum amount the borrower is eligible for;
• Pricing: Interest rates and fees charged by Business Enterprise Fund (BEF) will vary and will depend on the specific lending proposal. Business Enterprise Fund (BEF) pricing will take into account the benefit of the Government guarantee;
• Personal Guarantees: Personal guarantees can be taken at the Business Enterprise Fund (BEF) discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme;
• Guarantee is to Business Enterprise Fund (BEF): The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt;
• Subsidy: Growth Guarantee Scheme-backed facilities are provided at the discretion of Business Enterprise Fund (BEF) who are required to undertake standard credit and fraud checks for all applicants.
• The assistance provided through Growth Guarantee Scheme, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow. More information on subsidies is available here.

• Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group);
• UK-based: The borrower must be carrying out trading activity in the UK and, for most businesses, generating more than 50% of its income from trading activity;
• Viability test: Business Enterprise Fund (BEF) must consider that the borrower has a viable business proposition;
• Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings;
• Subsidy Limits: Borrowers will need to provide written confirmation that receipt of the Growth Guarantee Scheme facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received.

Please note, the following are not eligible under the Growth Guarantee Scheme:

• Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
• Public sector bodies
• State-funded primary and secondary schools.

Business Enterprise Fund (BEF) provide loans up to £250k under the Growth Guarantee Scheme. You will need to provide certain documents when you apply for an Growth Guarantee-backed facility.

These are likely to include:

• Management accounts
• Business plan
• 12 months cashflow forecast
• Access to Open Banking or historic accounts
• Details of assets
• Details of previous subsidy awards

Decision-making on whether a business is eligible for the Growth Guarantee Scheme is fully delegated to Business Enterprise Fund (BEF) by the British Business Bank. For early resettlement fees, please refer to Section (4) Repayments of our Terms of Engagement.

The British Business Bank’s Business Guidance pages have a range of guidance and resources for businesses, including information on how to manage your cashflow and where to find independent advice.

The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business & Trade. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme.

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit www.british-business-bank.co.uk/recovery-loan-scheme.