In the ever-evolving landscape of business finance, the UK government has introduced the Growth Guarantee Scheme (GGS), a successor to the Recovery Loan Scheme. Launched on 1 July 2024, the GGS aims to support smaller businesses in the UK by providing access to finance for investment and growth.

Key Features of the Growth Guarantee Scheme

Maximum Facility Size: Businesses can borrow up to a maximum of £2million (per business). This maximum remains the same as was previously available through RLS. The maximum is still £1 million for those inside the scope of the Northern Ireland Protocol.

Wide Range of Products: The scheme supports various financial products, including term loans, overdrafts, asset finance, invoice finance, and asset-based lending.

Term Length: Term loans and asset finance facilities are available for periods ranging from three months to six years, while overdrafts, invoice finance, and asset-based lending are available for periods ranging from three months to three years.

Eligibility: Businesses that took out loans under previous schemes such as the Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS), or Recovery Loan Scheme (RLS) before 30 June 2024 are still eligible for the GGS.

Interest Rates and Fees: The interest rates and fees charged by lenders will vary depending on the specific lending proposal.

How Does the Growth Guarantee Scheme Work and who is eligible?

The scheme is open to Sole Traders, Limited Partnerships, Limited Liability Partnerships, Corporations and Other any other legal entities carrying out business activity in the UK, with business activity operating through a business account.

Businesses can apply for a loan under the GGS directly through the accredited lenders, which includes regional funders like The FSE Group or with the help from a broker like us. Contact our team today for more information.

Eligibility Restrictions

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: Funders 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.

Which businesses are not eligible for the scheme?

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

For more information or to make a funding enquiry, contact our team via our online form