What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme (GGS) is a government-backed scheme. It helps small and medium-sized businesses access finance by offering lenders a government guarantee of 70% of the value of loans they issue. The programme is administered by the British Business Bank and delivered through accredited lenders. It’s intended to help businesses that might not qualify for traditional loans due to a lack of collateral or a limited track record.
Each business group can borrow up to £2 million over a period of three months to six years (depending on the product type). No personal guarantees are required for loans under £250,000.
Who is eligible to access the scheme?
Businesses intending to borrow via the GGS must:
- be based in the UK,
- have a turnover of up to £45 million, and
- be viable but unable to access finance.
How does the Growth Guarantee Scheme work?
It’s important to clarify that the business receiving the loan is fully liable for repayment. The government provides a 70% guarantee to the accredited lender on the outstanding loan amount (not to the business). Accredited lenders include banks and other finance providers … business owners cannot access the scheme directly. Lenders must be accredited by the British Business Bank.
Lending issued within the GGS can be used to cover:
- Term loans
- Overdrafts
- Asset finance
- Invoice finance
How to access the Growth Guarantee Scheme
The first step is to check your business’s eligibility with the British Business Bank. Once you have confirmation that you meet the criteria, you can apply to an accredited lender direct. If you successfully complete their application and credit process, the lender can offer a loan under the GGS terms with 70% government backing.
Do you own or run a smaller UK business that you’re planning to grow?
Is it difficult for your company to attract traditional finance?
The Growth Guarantee Scheme could be perfect for you! If you have queries about your company’s eligibility, please talk to the friendly team at Spicer & Co Chartered Accountants in Dunstable. We’re here to help.