The British Business Bank has launched the Growth Guarantee Scheme to help smaller businesses access the finance they need to invest and grow.
The Growth Guarantee Scheme is the successor to the Recovery Loan Scheme and is designed to support access to finance for UK smaller businesses as they look to invest and grow. It is expected to support around 11,000 smaller businesses between 1 July 2024 and 31 March 2026. Around 40 lenders have been accredited under the scheme to provide loans, overdrafts, asset finance, invoice finance and asset-based lending.
The Growth Guarantee Scheme can generally support facility sizes of up to £2m and provides the lender with a 70% government-backed guarantee. The terms of the scheme are intended to remain broadly unchanged from its predecessor, the Recovery Loan Scheme, enabling continuity and consistency for lenders and the business community.
Businesses can use the finance for any legitimate business purpose – including managing cashflow and investment. However, businesses must be able to afford to take out additional debt finance for these purposes.
Further information on the Growth Guarantee Scheme, including the current list of accredited lenders, is available on the British Business Bank website.
