What is the Growth Guarantee Scheme (GGS)?
The Growth Guarantee Scheme is a UK Government‑backed lending programme run by the British Business Bank. It launched on 1 July 2024 as the successor to the Recovery Loan Scheme (RLS). Under GGS, the Government provides accredited lenders with a 70% guarantee on each eligible loan, encouraging them to lend to viable smaller businesses. The borrower remains 100% liable for the debt.
How much can I borrow under the Growth Guarantee Scheme?
Generally up to £2,000,000 per business group. Minimum facility sizes are £25,001 for term loans & overdrafts, and £1,000 for asset finance, invoice finance and asset‑based lending. Borrowers in scope of the Northern Ireland Protocol are typically capped at £1m, with lower caps in some primary‑production sectors.
Who is eligible for GGS?
UK‑based businesses carrying out trading activity in the UK with annual turnover up to £45m (group basis), generating more than 50% of turnover from trading activity, and considered viable by the lender. The borrower must not be in financial difficulty or insolvency proceedings. Banks, building societies, insurers (other than insurance brokers), public sector bodies and state schools are not eligible.
What products does GGS support?
Five facility types are supported: term loans, overdrafts, asset finance, invoice finance and asset‑based lending. Term loans and asset finance can run for up to 6 years; overdrafts, invoice finance and ABL run for up to 3 years.
Is the loan guaranteed to the borrower?
No — the 70% guarantee is provided to the lender, not the borrower. You remain 100% liable for the debt. The guarantee simply gives the lender comfort to lend to viable businesses they might otherwise decline.
Will I need to provide a personal guarantee?
Lenders may still request a director’s personal guarantee on GGS facilities, but a key consumer protection of the scheme is that your principal private residence cannot be taken as security. PG requirements vary by lender and facility size — we’ll show you the full picture before you sign.
How does GGS compare to a standard unsecured business loan?
Both are unsecured (no charge on tangible assets), but a GGS facility benefits from the 70% government guarantee — helping lenders offer larger amounts (up to £2m vs typically £500k for a commercial unsecured business loan) and longer terms. GGS is generally slower (5–15 working days) than a commercial unsecured loan (24–48 hours).
Can I use GGS if I already have an RLS, CBILS, CLBILS or BBLS facility?
Yes — existing or repaid RLS, CBILS, CLBILS, BBLS borrowers can still apply for the Growth Guarantee Scheme, provided the new request is affordable and meets the GGS criteria.
Does GGS set the interest rate?
No. Each accredited lender prices its own facilities commercially, based on your size, sector, financials and the chosen product. As a guide, UK GGS term loans typically price between ~7% and 16% APR, with overdrafts often higher and asset / invoice finance often cheaper.
How long does a GGS application take?
Most GGS applications progress from quote to drawdown within 5–15 working days. Larger or more complex facilities — and applications requiring full year‑end accounts — can take 3–6 weeks. We’ll tell you up front what to expect.
What happens if I default on a GGS loan?
If your business defaults, the lender follows its standard recovery process. Once that recovery is complete, the Government’s 70% guarantee covers the lender’s residual loss. You remain 100% liable for the original debt — the guarantee does not write off your obligation.
How long is the Growth Guarantee Scheme available for?
The scheme launched on 1 July 2024 and is currently available to new lending through to March 2030, subject to ongoing Government review. The Chancellor announced an additional £500m of lending capacity in April 2025.
How does GGS compare to a merchant cash advance?
A merchant cash advance is repaid as a percentage of your daily card sales — flexible but typically expensive. A GGS term loan has fixed monthly repayments, longer terms and lower headline rates, but slower decisions and stricter underwriting. GGS suits businesses with predictable cashflow planning growth investment; MCAs suit card‑heavy retail and hospitality wanting speed.
