The Growth Guarantee Scheme (GGS) is a government-backed scheme that helps smaller UK businesses borrow to invest and grow. It gives accredited lenders a 70% government guarantee on facilities of up to £2 million, which can turn a near miss into a yes. Your business stays 100% liable for the loan.
How it works
- The lender provides the loan, not the government. Only lenders accredited by the British Business Bank can offer it.
- The guarantee protects the lender. It covers 70% of the outstanding balance if the lender can't recover it after its normal recovery process.
- The lender makes every decision: eligibility, pricing and terms.
- You stay liable for the whole loan. The guarantee doesn't reduce what you owe.
What it covers
Term loans, overdrafts, asset finance, invoice finance and asset based lending:
- from £25,001 to £2 million per business group (term loans and overdrafts; asset and invoice finance start at £1,000)
- up to 10 years for term loans and asset finance, and up to 3 years for overdrafts, invoice finance and asset based lending
Background
The British Business Bank runs the scheme for the government. It opened on 1 July 2024, replacing the Recovery Loan Scheme, and runs until 31 March 2030. The changes announced in July 2026, 10-year terms and a £54 million turnover cap, now apply across the scheme.
Is it right for you?
A guaranteed facility is rarely the cheapest offer a strong business can get. If a lender will give you what you need without it, that's usually cheaper. The scheme earns its place when a sound case sits outside standard policy. See Am I eligible for the Growth Guarantee Scheme? for who can use it.
Last reviewed: 8 October 2026