A UK Government-backed funding initiative designed to help small and medium-sized businesses access the finance they need to grow, invest, and manage cashflow. The scheme is delivered by accredited lenders and administered by the British Business Bank on behalf of the government.
Launched in July 2024, the Growth Guarantee Scheme replaced the Recovery Loan Scheme and continues the government’s commitment to supporting business finance across the UK.
Through the scheme, lenders can provide finance facilities supported by a government guarantee of up to 70% of the outstanding balance, helping to reduce risk and improve access to funding for viable businesses.
Although the guarantee supports the lender, businesses remain fully responsible for repaying the borrowing.
The Growth Guarantee Scheme is designed to improve access to funding for UK businesses that want to invest and expand but may struggle to secure finance on standard terms.
Businesses can use funding for a wide range of purposes, including:
The scheme supports a range of finance products, including:
These finance products are provided through a network of accredited lenders across the UK.
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Under the Growth Guarantee Scheme, businesses can typically access funding of up to £2 million per business, depending on the lender and the type of finance facility being used.
Repayment terms vary depending on the facility type, but generally include:
Interest rates and terms are determined by the lender based on the business’s financial profile and borrowing requirements.
To qualify for finance under the scheme, businesses typically need to meet several criteria set by the British Business Bank and participating lenders.
Applications for the Growth Guarantee Scheme are made through accredited lenders, rather than directly through the government.
Each lender will carry out its own credit assessment and may offer funding under the scheme where appropriate. If a lender can provide finance on normal commercial terms without the government guarantee, they may choose to do so instead.
Where the scheme is used, the government guarantee supports the lender rather than the borrower, helping to encourage lending to businesses that might otherwise struggle to secure finance.
At Highland Finance, we work with a broad panel of lenders that participate in government-supported funding programmes, including the Growth Guarantee Scheme.
Our experienced advisers can help you:
If your business is looking to secure funding to support growth, investment or working capital, we can guide you through the options available and help you find the right solution.
