Now Live: Growth Guarantee Scheme
What is the Growth Guarantee Scheme (GGS)?
The Growth Guarantee Scheme (GGS) is a new initiative designed to make securing funding easier for small businesses in the UK. It builds upon the success of the Recovery Loan Scheme (RLS). The scheme offers significant benefits for borrowers. It incentivises lenders to approve loans by providing a 70% government guarantee.
Additionally, your main residence cannot be used as collateral, protecting your personal property. With this flexibility, you can use the funds for various legitimate business purposes, ultimately helping you grow your business.
Is my business eligible for the Growth Guarantee Scheme?
To be eligible your business(es) will have to:
- Be trading in the UK
- Generating more than 50% of turnover from trading activity
- Have a turnover up to £45m a year
- Not currently be involved in insolvency proceedings
- Not be any of the following: a bank, insurer, public sector body, a state funded school, or an individual other than a sole trader or a partner acting on behalf of a partnership
“The Growth Guarantee Scheme will build on the work of the Recovery Loan Scheme, helping smaller businesses to access the right type of finance they need to grow and thrive. This type of guarantee scheme supports lenders in providing a wide range of finance for smaller businesses, and so is a vital ingredient in the smaller business finance landscape.”
Louis Taylor, CEO, British Business Bank
What are the Benefits of the Growth Guarantee Scheme?
The GGS fuels growth with easy funding, fixed rates & flexible options
Flexible Funding
The scheme offers a variety of loan products, including term loans, overdrafts, and invoice finance.
Protect Your Assets
Unlike some loans, the Growth Guarantee Scheme doesn't require your personal residence as security.
Boost Business Growth
Your business can invest in new equipment, boost working capital, or explore expansion opportunities.
Eligibility
Previous applicants of CBILS, Bounceback, or RLS are eligible to apply.
Any Purpose
GGS loans can be used for a variety of business needs, from inventory purchases to marketing campaigns.
Fast Decisions
Get a decision on your application in as little as 1 hour and the funds typically within 48 hours.
Apply for the Growth Guarantee Scheme
Apply today and we’ll find the right product for you on the best possible terms
Prefer to talk? Call us on 01242 696 235
What can the Growth Guarantee Scheme be used for?
Improving cash flow
Buying equipment
Hiring staff
Purchasing inventory, materials or stock
Refinancing existing debt
Unexpected costs
Marketing and advertising
Operating costs and expenses
Business acquisitions
Covering staff wages
Frequently Asked Questions
What is the Growth Guarantee Scheme?
The GGS is a government-backed scheme that makes it easier for small businesses in the UK to access finance. It offers lenders a 70% guarantee on loans they provide to eligible businesses.
Is my business eligible?
The GGS is generally open to smaller businesses with a turnover of up to £45 million, that are trading in the UK, and deemed viable by the lender. Businesses in difficulty are not eligible. Previous applicants of CBILS, Bounce Back Loan Scheme (BBLS), or Recovery Loan Scheme (RLS) may also be eligible.
How much funding can I get through the GGS?
Eligible businesses can borrow from £25,001 to £2m.
What types of finance are available under GGS?
The GGS supports a variety of financing options beyond just traditional term loans. This includes overdrafts, invoice finance, and asset finance.
Does the GGS guarantee I will get a loan?
No, the GGS encourages lenders to approve loans, but the final decision rests with the lender based on their own assessment criteria.
What are the interest rates for GGS loans?
Interest rates can vary depending on the lender, the type of finance, and your business profile. The scheme itself doesn’t dictate specific rates, but competition among lenders may lead to more competitive offers.
How do I apply for a GGS loan?
You cannot apply directly for the GGS. You would need to approach a lender accredited under the scheme, or use a reputable broker which will increase your chances of approval.
What documents do I need to apply for a GGS loan?
The required documents will vary by lender, but typically include business plans, financial statements, and personal guarantees.
Is my house at risk if I take a GGS loan?
No, your main residence cannot be used as security for a GGS loan, protecting your personal property.
How long does it take to get approved for a GGS loan?
The approval timeframe can depend on the lender and the complexity of your application. However, due to the government guarantee, lenders may have faster processing times compared to traditional loans.