No. A Growth Guarantee Scheme loan is a commercial loan from an accredited lender. The government gives the lender a 70% guarantee, but the lender provides the money, sets the rate and makes the decision.
Is it cheaper?
Not necessarily. Lenders must pass on the benefit of the guarantee in their pricing, but they also pay a fee for the guarantee, which is reflected in what they charge. A guaranteed facility is rarely the cheapest offer a strong business can get.
Do I pay a fee for the guarantee?
No. The guarantee fee is paid by the lender, not by you, although it's reflected in the lender's pricing.
When it's the right choice
- Choose commercial if a lender will give you the amount and term you need without the guarantee. It's usually cheaper and often faster.
- Choose GGS when your case is sound but sits outside standard credit policy, for example with limited security, a recovering year in the accounts or a sector the high street is cautious about.
Lenders must check commercial terms first
Lenders should only use the scheme if they can't offer you the same or better terms without it.
We compare both routes and tell you which your case needs. See Does bizbritain lend Growth Guarantee Scheme loans?.
Last reviewed: 8 October 2026