Growth Guarantee Scheme

The Growth Guarantee Scheme helps UK businesses access funding for growth, working capital, or refinancing—backed by a government guarantee to boost approval chances. Ideal if you've struggled to secure finance through traditional routes.

WHAT IS REQUIRED

6 months bank statements

Latest financial accounts

Purpose of the loan

Directors details, including residential status

WHY CHOOSE IT?

A wide range of products are available

Can borrow alongside existing CBILS and RLS facilities

Refinancing expensive short-term loans allowed

Cannot take main residence as security

What is the Growth Guarantee Scheme (GGS)?

The Growth Guarantee Scheme (GGS) is a government-backed initiative designed to support UK businesses in accessing finance to invest, expand, and strengthen their operations. Whether you need funding for growth, working capital, or refinancing, this scheme allows accredited lenders to support viable businesses which may otherwise fall outside of their funding criteria.

Eligible businesses can access loans from £25,000 up to £2 million, with repayment terms ranging from 3 months to 6 years. The government provides a 70% guarantee to the lender, increasing approval chances, but the borrower remains fully responsible for repaying the loan and often will be required to provide a full personal guarantee.

The Growth Guarantee Scheme offers wide range of products supported by different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.

How does the Growth Guarantee Scheme work?

All products under the GGS operate similarly to their standard counterparts, with the primary difference being the scheme's specific terms and may also come at a higher cost to the borrower. For detailed information on each product, please refer to our Unsecured Business Loans, Asset Finance, and Invoice Finance pages, depending on the type of finance you're applying for.

It's important to note that lenders should only offer finance through GGS if they are unable to offer a facility on equivalent or better terms without the guarantee.

Is the GGS suitable for me?

The Growth Guarantee Scheme is ideal for businesses that may not meet standard lending criteria or require additional funding beyond what lenders typically offer. However, businesses must still demonstrate viability.

While this scheme improves the likelihood of approval, it does not remove borrower liability - you remain fully responsible for repaying the loan.

What is required for an application?

The documentation required for a Growth Guarantee Scheme is the same as for the standard finance products. Please refer to our Unsecured Business Loans, Asset Finance, and Invoice Finance pages for specific details on what you'll need to provide based on your chosen type of finance

FAQs

Who is eligible for the Growth Guarantee Scheme?

UK-based businesses with a turnover of up to £45 million can apply, provided they meet the lender’s criteria. Some sectors, such as banks and insurers, are excluded, and you must be able to demonstrate a viable business.

Do I need to provide security?

Lenders are allowed to take personal guarantees for all types of finance under the scheme. Lenders cannot take your principal private residence as security. A lender may also take a debenture over the business.

Can I repay the loan early?

Early repayment terms depend on the lender. Some allow early repayment without penalties, while others may charge fees.

What interest rates apply?

Interest rates vary by lender and are based on your business’s financial health and risk profile.

Can startups apply?

Yes, but lenders typically require at least 2 years of trading history. Some lenders may consider newer businesses on a case-by-case basis.

How long does the application process take?

Approval times vary depending on the lender and type of finance. If all required documents are provided upfront, a decision can often be made within a few days. However, we recommend allowing 2–3 weeks from submission of all information to account for lender processing times.

Can I use this loan to refinance existing debt?

Yes, refinancing is allowed, provided it supports your business’s sustainability and growth.

Am I personally liable for the loan?

Yes. While the government guarantees 70% of the loan for the lender, you remain fully responsible for repayment.

Can I use multiple loans under the Growth Guarantee Scheme?

Yes, as long as your total borrowing remains within the £2 million limit and your business meets affordability criteria.

Where can I apply?

You can apply through accredited lenders participating in the scheme. Keep in mind that not all lenders offer every product under the scheme, and eligibility criteria varies from lender to lender. A finance broker, such as Choice Business Loans, can help you identify the most suitable lender based on your needs.

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Choice Loans is a broker, not a lender. We will connect you with a lender suitable for your needs or, if appropriate, a specialist broker. We do not charge you an upfront fee but, if your application is successful, a broker commission may be charged.