The Growth Guarantee Scheme, usually shortened to GGS, is a UK government scheme that helps smaller businesses borrow from banks and other lenders. It is run by the British Business Bank on behalf of the government. The scheme doesn’t lend money itself and it isn’t a grant. Instead, it gives participating lenders a partial guarantee, which can make them more willing to lend to businesses that are viable but might otherwise fall just outside their usual appetite.
Where the scheme came from
The GGS opened on 1 July 2024 as the successor to the Recovery Loan Scheme, which itself followed the pandemic-era loan schemes. It was originally due to run until 31 March 2026. It has since been extended, and British Business Bank publications now refer to the scheme continuing until March 2030 following the 2025 Spending Review. End dates for government schemes can change, so check the British Business Bank website for the latest terms before you plan around a particular date.
How the guarantee works
When a lender provides a facility under the scheme, the government guarantees 70% of the lender’s eligible loss if the business can’t repay, after the lender has gone through its normal recovery process. That guarantee protects the lender, not the borrower. Your business is still responsible for repaying 100% of what it owes, plus interest and any fees, in the same way as any other business loan.
Because the lender carries less risk, a GGS facility can sometimes be offered where a standard commercial loan would not be, or on terms that are more workable. It is not a guarantee of approval. Each lender makes its own credit decision and sets its own pricing within the scheme rules.
Who can use the scheme
The headline eligibility rules published by the government and the British Business Bank are broadly as follows:
- The business must be trading in the UK.
- More than half of its turnover must come from trading activity.
- It must be able to show the lender that it is viable, meaning it can afford the repayments.
- It must not be a business in difficulty, for example in relevant insolvency proceedings.
- Annual turnover must be within the scheme limit. This was £45 million, and the government announced in July 2026 that it would rise to £54 million.
Some sectors and activities are excluded, and lenders may apply their own extra criteria on top of the scheme rules, such as minimum trading history or minimum turnover. A business that meets the scheme rules still needs to meet the lender’s own tests.
What it can be used for
The scheme can support several types of finance, which makes it more flexible than many people expect:
- Term loans for investment, growth or working capital.
- Overdrafts for day-to-day cash flow.
- Asset finance for equipment, machinery and vehicles.
- Invoice finance and asset-based lending to release cash tied up in unpaid invoices or other assets.
The maximum a business group can have under the scheme is £2 million in total, across all its GGS facilities. Lenders can set their own minimum facility sizes, which vary between providers and products.
Terms, security and personal guarantees
Term loans and asset finance under the scheme have generally been available for up to six years, with overdrafts and invoice finance for shorter periods. In July 2026 the government announced that the maximum term for term loans and asset finance of up to £1.1 million would increase from six to ten years, alongside the higher turnover limit. Lenders adopt changes like these on their own timetables, so a particular lender may not yet offer the longer term or the higher turnover limit. It is worth asking directly.
Lenders can ask for security and personal guarantees in line with their normal lending policy. One important protection is that a principal private residence, meaning the main home of a director or guarantor, can’t be taken as security for a GGS facility. Other personal assets could still be at risk under a personal guarantee, so read any guarantee carefully and take independent legal advice before signing.
How to apply
You don’t apply to the government or the British Business Bank. You apply to an accredited lender that offers GGS facilities. The British Business Bank publishes a list of accredited lenders on its website, and they include high street banks, challenger banks, specialist lenders and asset and invoice finance providers.
Lenders assess a GGS application in much the same way as any business loan. Expect to provide recent accounts, business bank statements, management information if you have it, details of existing borrowing and a clear explanation of what the money is for and how it will be repaid. A specialist finance broker can help you understand which accredited lenders are likely to suit your business and whether a scheme-backed facility or a standard product makes more sense in your case.
Is it the right option?
The scheme can be a useful route for established businesses that want to borrow for a sound reason but have found lenders cautious. It is not always the cheapest or quickest option, and not every lender offers every product under it. Compare a GGS facility with standard business loans, asset finance and invoice finance before deciding. Because the details can change, check the British Business Bank website for the latest terms.
This guide is general information, not financial advice. Loanleaf is an introduction service, not a lender or broker, and is not authorised by the FCA. Check the details with your broker or lender before you borrow.