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The Growth Guarantee Scheme is the successor to the Recovery Loan Scheme.
It is designed to support access to finance for UK smaller businesses as they look to invest and grow. The Growth Guarantee Scheme launched with accredited lenders on 1 July 2024, with a wide range of products supported by different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.
On 15 April 2025, the Chancellor announced that the Growth Guarantee Scheme will provide approximately £500m of additional lending capacity to help more smaller businesses across the UK. The extra funding is aimed at smaller businesses that may need support with cashflow issues due to changes in global tariff rates.
Key features of the scheme:
The Growth Guarantee Scheme aims to improve the terms on offer to borrowers. If a lender can offer a commercial loan on better terms, they will do so.
Key features include:
- Up to £2m per business group: The maximum amount of a facility provided under the scheme is generally £2m. Minimum facility sizes vary, starting at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts;
- Wide range of products: GGS supports term loans, overdrafts, asset finance, invoice finance and asset-based lending facilities. Not all lenders will be able to offer all products;
- Term length: Term loans and asset finance facilities are available from three months up to six years, with overdrafts,invoice finance and asset based lending available from three months up to three years;
- Pricing: Interest rates and fees charged by lenders will vary and will depend on the specific lending proposal;
- Personal Guarantees: Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices;
- Guarantee is to the lender: The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt;
- Decision-making delegated to the lender: GGS-backed facilities are provided at the discretion of the lender. Lenders are required to undertake their standard credit and fraud checks for all applicants.
Eligibility criteria include:
- Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group);
- UK-based: The borrower must be carrying out trading activity in the UK and, for most businesses generating more than 50% of its income from trading activity.
Access to finance through the Growth Guarantee Scheme (GGS) is only available through accredited lenders. Visit the website to find out more and search which lenders in your region provide the type of finance you’re looking for.