Growth Guarantee Scheme

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What is the Growth Guarantee Scheme?

Successor to the Recovery Loan Scheme, Growth Guarantee Scheme aims to improve the terms on offer to borrowers, helping to support small and medium UK businesses to access the finance they need to invest and grow.

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Who can apply?

You can apply if you have an annual turnover between £200,000 and £45 million, have been trading for at least 2 years, and demonstrate growth potential.

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How can I use the funding?

You can allocate the money to where it is most needed and can use the funds for any legitimate reason, to cover any costs, kickstart a project, fund premises, hire staff or boost the business.

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The Growth Guarantee Scheme at a Glance

Every business owner faces that crucial moment when growth opportunities arise, but funding becomes the main roadblock. We’ve seen countless promising businesses struggle to secure the financial backing they need, which is where the Growth Guarantee Scheme comes into play.

Successor to the Recovery Loan Scheme, the Growth Guarantee Scheme launched with accredited lenders in July 2024. The Growth Guarantee Scheme aims to improve the terms on offer to borrowers, helping to support small and medium UK businesses to access the finance they need to invest and grow. This government-backed business loans initiative represents a significant shift in how UK businesses can access funding.

Here at Elite Business Funding, our team of independent commercial finance specialists have years of experience helping UK companies source the funds needed to support and expand their business. Here we explain how the GGS scheme works, providing information on the requirements, application process, its core benefits and how we can help you leverage this opportunity for your business growth.

 

Understanding the Growth Guarantee Scheme

Initially launched in April 2021, ‘The Recovery Loan Scheme’ was designed to offer financial support to UK businesses to help them recover and grow after the impact of the coronavirus. The government then made the decision to extend and rebrand the initiative to the Growth Guarantee Scheme in order to help more SMEs access crucial financing.

Now running until March 2026, the scheme has evolved and now offers even more comprehensive support.

Here are the key features that make this scheme stand out:

  • Facilities up to £2 million (£1 million for Northern Ireland Protocol businesses)
  • Multiple finance options including term loans, overdrafts, and asset finance
  • Flexible terms ranging from 3 months to 6 years
  • Available to businesses with turnover up to £45 million
  • Competitive interest rates reflecting government backing

What we find particularly valuable about this government-backed business loans initiative is its versatility. Whether you’re looking to manage cash flow or fund significant investments, the GGS scheme provides the flexibility needed for various business purposes.

One of the most significant advantages we’ve observed is that businesses that previously received support through other COVID-19 schemes aren’t excluded from accessing this finance. However, it’s worth noting that previous borrowing might affect your maximum eligible amount under the Growth Guarantee Scheme

 

Application Process and Requirements

We’ve helped numerous businesses navigate the Growth Guarantee Scheme application process, and we’re here to guide you through each step. The journey begins with choosing an accredited lender and preparing your application package.

Before you apply, ensure your business meets these fundamental criteria:

  • UK-based with 50% or more UK trade activity
  • Annual turnover between £200,000 and £45 million
  • Trading for at least 2 years
  • Demonstrable growth potential
  • Not classified as a “business in difficulty”

When preparing your application, we’ll need to see several key documents to assess your eligibility. Management accounts, business plans, historic accounts, and details of your assets are essential. We’ll also review any previous subsidy awards your business has received, as these may affect your borrowing capacity.

Our standard credit assessment process includes thorough checks on all key principles of your business. We’ll conduct credit, fraud, Anti-Money Laundering (AML), and Know Your Customer (KYC) verifications. While the government-backed growth guarantee scheme provides security, we’re still required to ensure you can afford the repayments.

Remember, if one lender declines your application, you can approach other accredited lenders within the scheme. We often find that working with a broker can help streamline the process, providing expertise while you focus on running your business.

 

The Benefits of the Growth Guarantee Scheme

For SMEs seeking financing, the GGS offers several significant advantages whilst providing them access to substantial funding that enables them to pursue their growth plans.

Here are just a few of the benefits for businesses who choose to apply for the Growth Guarantee Scheme.

  • Secure – GGS offers a 70% government-backed lender guarantee which makes finance more accessible.
  • Freedom – Businesses are allowed to allocate the money to where it is most needed and can use the funds for any legitimate reason, to cover any costs, kickstart a project, fund premises, hire staff or boost the business.
  • Assurance – The Principal Private Residence (main family home) cannot be taken as security by the lender.
  • Product Flexibility – The Growth Guarantee Scheme supports term loans, asset finance and asset-based lending facilities.
  • Competitive – The added security means that competitive fixed rates are available to more businesses.
  • Broad Eligibility – The criteria allow for a wide range of businesses to apply, including SMEs with a turnover of up to £45m and even previous applicants of CBILS, Bounce Back, or RLS.
  • Fast Decisions – The decision and funding process is often quick, with many applications receiving a response within 24 hours.

 

Strategic Implementation for Business Growth

Having supported numerous businesses through the Growth Guarantee Scheme, we’ve identified several strategic ways to leverage this funding for maximum impact. The scheme’s flexibility allows us to help businesses implement growth strategies across various areas:

  • Market expansion initiatives
  • Equipment and technology upgrades
  • Working capital optimisation
  • Infrastructure development
  • Innovation and R&D investments

What makes this scheme particularly effective for strategic growth is its adaptability. Whether you’re looking to invest in new technology or expand your market presence, the GGS scheme provides the financial backbone needed for sustainable growth. We’ve found that businesses utilising this funding for specific, targeted growth initiatives tend to see the most significant returns.

Our experience shows that successful implementation often involves phased funding deployment. Rather than utilising the entire facility at once, we recommend creating a structured drawdown plan aligned with your growth milestones. This approach helps optimise the use of funds while maintaining healthy cash flow management.

 

Supporting Your Business

The Growth Guarantee Scheme stands as a powerful tool for UK businesses ready to expand their horizons. Through our extensive work with the scheme, we’ve seen how this government backing creates real opportunities for companies that might otherwise struggle to secure traditional funding.

The Growth Guarantee Scheme represents more than just a funding solution – it’s a partnership between government, lenders, and ambitious businesses looking to grow. At EBF, our team of dedicated specialists are here to provide the guidance, support and expertise that SMEs need to obtain the vital funding that will secure their business’s future.

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