As with most government-backed schemes, certain sectors and types of business are excluded or restricted under the Growth Guarantee Scheme’s rules, and some uses of funds are excluded too. The specific exclusions are defined by the scheme and can change, so the only reliable way to confirm your position is to check current eligibility with an accredited lender or the British Business Bank. If your sector isn’t covered, alternatives include standard commercial finance, grants and sector-specific support.
Key takeaways
- Certain sectors and business types are excluded under the scheme rules.
- Some uses of funds are also restricted, not just certain sectors.
- Exclusions can change — always confirm the current position before applying.
- Being in an eligible sector doesn’t guarantee approval.
- Check eligibility early to avoid wasted effort on a full application.
- Alternatives include standard finance, grants and sector-specific support.
Before investing time in a Growth Guarantee Scheme application, it is worth checking one fundamental question: is your sector — and your intended use of funds — eligible? Like most government-backed schemes, the Growth Guarantee Scheme excludes certain sectors and restricts certain uses under its rules. This guide explains how exclusions work, why they exist, how to check your position, and what to do if the scheme is not open to your business.
Are some sectors excluded?
Yes. As with most government-backed schemes, certain sectors and types of business are excluded from the Growth Guarantee Scheme under its rules. The specific exclusions are defined by the scheme itself, and rather than relying on a fixed published list that may change, the practical approach is to confirm current eligibility with an accredited lender or the British Business Bank. If your business operates in a sector you are unsure about, checking early avoids wasted effort.
Why exclusions exist
Exclusions reflect the policy behind government-backed lending and the scheme’s intended purpose, together with requirements such as subsidy control. Some activities fall outside what the scheme is designed to support, and others are restricted to keep the scheme within its rules and objectives. Understanding that exclusions are a deliberate feature — not an oversight — helps set expectations and points you toward alternative funding if needed.
Restrictions on use of funds
Eligibility is not only about who you are but also what you will do with the money. Beyond outright sector exclusions, there can be restrictions on certain uses of funds under the scheme rules. The scheme supports a wide range of legitimate business purposes — working capital, investment, growth — but some uses are excluded. Confirming both your sector eligibility and your intended use with the lender avoids surprises later in the process.
Eligibility has two parts: your sector and your use of funds. A business in an eligible sector can still be caught out if the specific purpose isn’t permitted — check both before applying.
Eligible sector doesn’t mean guaranteed approval
Even if your sector and use of funds qualify, approval is not guaranteed. Being eligible is necessary but not sufficient: the accredited lender still assesses affordability, viability and your business within the scheme rules. A strong, viable application with clear financials and a sensible purpose is what wins approval — eligibility simply gets you to the starting line.
Exclusions can change
Scheme rules can be updated, so exclusions and restrictions may change with revisions or extensions to the scheme. This is precisely why a current check matters: information that was accurate a year ago may no longer hold. Always confirm the present position with an accredited lender or the British Business Bank rather than relying on older sources.
How to check your eligibility
- Identify your sector and the specific purpose of the funding.
- Ask an accredited lender or the British Business Bank whether both qualify.
- Consider a broker for a quick read on your eligibility across lenders.
- Confirm any subsidy-control position if you’ve had other public support.
- Only then invest time in a full application.
What to do if your sector is excluded
If the scheme is not open to your business, there are still good options:
- Standard commercial finance — term loans, asset or invoice finance outside the scheme.
- Grants — non-repayable funding for eligible projects and sectors.
- Sector-specific and regional support — programmes targeted at particular industries or areas.
A commercial finance broker can help identify the most suitable route if scheme-backed lending is unavailable to you.
The bottom line
The Growth Guarantee Scheme excludes certain sectors and restricts certain uses of funds under rules that can change over time, so checking your eligibility — both your sector and your intended use — with an accredited lender or the British Business Bank is an essential first step. If you qualify, eligibility gets you to the starting line but doesn’t guarantee approval; if you don’t, standard finance, grants and sector-specific support offer alternative routes to the funding your business needs.
Frequently asked questions
Are some sectors excluded from the Growth Guarantee Scheme?
Yes. As with most government-backed schemes, certain sectors and types of business are excluded under the scheme rules. The specific exclusions are defined by the scheme and can be confirmed with an accredited lender or the British Business Bank.
How do I know if my sector is excluded?
The most reliable way is to check current eligibility directly with an accredited lender or the British Business Bank, because exclusions are defined by the scheme rules and can change. A broker can also tell you quickly whether your sector qualifies.
Why does the scheme exclude certain sectors?
Exclusions reflect the scheme’s rules and the policy behind government-backed lending, including subsidy control requirements and the scheme’s intended purpose. Some activities are restricted because they fall outside what the scheme is designed to support.
What happens if my business is in an excluded sector?
If the scheme is not open to your sector, you would look to alternative funding — standard commercial finance, grants, or sector-specific support. A broker can help identify suitable routes if scheme-backed lending is unavailable to you.
Can part of my business qualify if another part does not?
Eligibility depends on the business and the scheme rules, and the position can be nuanced for mixed activities. The accredited lender assesses your specific circumstances, so discuss the detail with them if your business spans different activities.
Do exclusions change over time?
Yes, scheme rules can be updated, so exclusions and restrictions may change with scheme revisions or extensions. Always confirm the current position before applying rather than relying on older information.
Are there restrictions as well as outright exclusions?
Yes. Beyond outright sector exclusions, there can be restrictions on certain uses of funds and conditions under the scheme rules. Confirming both your sector eligibility and your intended use of funds with the lender avoids surprises.
Does being in an eligible sector guarantee approval?
No. Being in an eligible sector is necessary but not sufficient. The accredited lender still assesses affordability, viability and your business within the scheme rules, so approval is not guaranteed even if your sector qualifies.
What general eligibility applies beyond sector?
Broadly, the scheme targets UK-based, trading, viable SMEs within the turnover limit (broadly up to £45 million) and outside excluded sectors, subject to subsidy rules. The lender makes the final decision using its own criteria.
Can I use the funding for any purpose if my sector qualifies?
The scheme supports a wide range of legitimate business purposes, but some uses are excluded under the rules. Confirm that your intended use qualifies with the lender, as eligibility covers both who you are and what you will use the funds for.
Do subsidy control rules affect eligibility?
Yes. Because the scheme involves government support, it operates within the UK’s subsidy control framework. This can affect eligibility and amounts if you have received other public support; the lender checks the position as part of the process.
Where can I get a definitive answer on my eligibility?
From an accredited lender or the British Business Bank, which set and apply the current rules. Because exclusions and criteria can change, a current check with them — or via a broker — is the only reliable way to confirm your position.
What alternatives exist if I am excluded?
Standard commercial loans, asset or invoice finance outside the scheme, grants, and sector-specific or regional support. The right alternative depends on your need and circumstances, and a broker can help you find it.
Should I check eligibility before preparing a full application?
Yes. Confirming your sector and use of funds are eligible early avoids wasted effort. A quick eligibility check with a lender or broker is a sensible first step before investing time in a full application.
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Get your free quoteThis article is general information, not financial advice. Eligibility, rates and terms vary by lender and your circumstances. The Loans Hub is a finance broker, not a lender.
