Growth Guarantee Scheme explained
The Growth Guarantee Scheme (GGS) is the UK government's way of nudging lenders to say yes more often. They guarantee 70% of the loan to the lender, which means providers are more willing to take a chance on businesses they might normally turn down. If you've been struggling to get a traditional loan, this is worth knowing about.
Last updated: April 2026 . Source: British Business Bank
How does the Growth Guarantee Scheme work?
The concept is straightforward. The UK government (via the British Business Bank) guarantees 70% of certain business finance facilities. This guarantee is for the lender, not for you. It means if a business defaults, the government covers 70% of the lender's loss.
Why does this matter to you? Because it makes lenders more likely to say yes. The guarantee reduces their risk, which means they can approve businesses they might otherwise decline.
Key facts at a glance
Who qualifies for the Growth Guarantee Scheme?
The scheme is broad, but there are some criteria:
- ✓ UK-based business
- ✓ Annual turnover up to £45 million
- ✓ The business must be viable
- ✓ The lender would not otherwise provide the finance without the guarantee
Individual lender criteria may be stricter than the scheme's minimum requirements. Not all accredited lenders approve the same types of businesses.
GGS vs other types of business funding
The GGS is one option among several. Here's how it compares:
| GGS Loan | Merchant Cash Advance | Standard Bank Loan | |
|---|---|---|---|
| Backed by | Government (70%) | Provider only | Bank only |
| Max amount | £2m | Varies (1-1.5x turnover) | Varies |
| Repayments | Fixed monthly | % of card sales | Fixed monthly |
| Speed | Weeks | 24-48 hours | Weeks to months |
| Best for | Larger, planned investments | Quick, flexible cash | Long-term, established |
Frequently asked questions
What is the Growth Guarantee Scheme?▼
The Growth Guarantee Scheme (GGS) is a UK government-backed programme managed by the British Business Bank. It encourages lenders to provide finance to smaller businesses by guaranteeing a portion of each loan. This reduces the lender's risk, making them more likely to say yes.
Who is eligible for the Growth Guarantee Scheme?▼
The scheme is available to UK businesses with a turnover up to £45 million. The business must be viable and have a borrowing proposal that the lender would not otherwise consider without the guarantee. Specific eligibility criteria may vary by lender.
How much can I borrow under the GGS?▼
Facilities of up to £2 million are available per business. This can include term loans, overdrafts, asset finance, and invoice finance. The government guarantees 70% of the facility to the lender.
Does CapExpand offer GGS loans?▼
CapExpand is an introducer, not a lender. We don't provide GGS loans directly. However, some lenders on our panel are accredited GGS providers. We can help you understand your options and connect you with the right providers.
Is the GGS the same as the Recovery Loan Scheme?▼
The GGS succeeded the Recovery Loan Scheme, which itself followed the Covid-era Bounce Back Loan and CBILS programmes. It has been designed as a more permanent facility to support small business lending across the UK in 2026 and beyond.
Do I have to pay the government guarantee fee?▼
There is no fee charged to the borrower for the government guarantee. The lender may charge their own arrangement fees and interest as they normally would. The guarantee is between the government and the lender.
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