Growth Guarantee Scheme (GGS)

The Government’s new Growth Guarantee Scheme ‘will allow lenders to offer more finance’ to help smaller businesses access finance, providing you with more opportunities.


… use funds for any legitimate business purpose without using your Personal Private Residence as collateral.

Replaces the Recovery Loan Scheme, with effect from 1 July 2024

The GGS is a two-year extension of the Recovery Loan Scheme that helped firms invest and grow after Covid. Since the original Recovery Loan scheme was launched in April 2021, over 20,000 businesses have been supported, and the GGS is designed to increase this number further.

Key facts:

Businesses that have previously taken out Government-backed lending can apply. These include sole traders, limited partnerships, limited liability partnerships, corporations, co-operatives, community benefit societies, and any other legal entity carrying out business activity in the UK.

The terms can include personal guarantees, taken at the lender’s discretion, but Principal Private Residences cannot be taken as security within the scheme.

  • GGS supports UK businesses with loans up to £2 million.
  • Minimum facility sizes vary, from £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts.
  • GGS covers term loans, overdrafts, asset finance and invoice financing.
  • Funds are available for any legitimate business use.
  • Repayment terms are from three months up to six years.*
  • Businesses are liable for 100% of the borrowing.

Am I eligible?

  • Are you a UK-based SME with up to £45 million turnover?
  • Are you generating more than 50% of your income from trading activity in the UK?

To be eligible, you must:

  • Be a business not ‘in difficulty’, including not being in ‘relevant insolvency proceedings’.
  • We need to consider you have a viable business proposition.
  • Not exceed the maximum amount of subsidy you are allowed to receive.

How it works:

The government guarantees 70% of lending to each eligible business, reassuring lenders and making more loan funds available for SMEs.

  • GGS finance can be used for ‘any legitimate business purpose’ such as managing cash flow and investment, expanding your facilities, investing in equipment, or exploring new markets.
  • * Lending terms can extend to six years for term loans and asset finance facilities (minimum three months) AND three years for overdrafts and invoice finance facilities (minimum three months).
  • It offers a 70% government-backed guarantee on loans to SMEs of up to £2 million in Great Britain and £1 million in Northern Ireland.
  • The Growth Guarantee Scheme started on July 1st, 2024 and ends on March 31st, 2026.

Alternatives to the GGS may offer deals for some SMEs, please contact us on 01959 565 000 to learn about your loan options, tailored specifically to your needs.