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Growth Guarantee Scheme

Get up to £2 million with 70% government backing -
no personal residence security required

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Government-Backed Business Finance

Growth Guarantee Scheme Loans

The UK’s Growth Guarantee Scheme has already enabled over £2.1 billion in business financing since July 2024, with an impressive 92.4% success rate. Unlike emergency lending schemes, GGS focuses specifically on growth and investment, making it ideal for established businesses ready to scale.

FundingBay’s expert commercial finance team navigates the complex GGS landscape for you. We analyze your requirements against our panel of 60+ accredited lenders to identify the most suitable providers and optimize your application for success.

With the Growth Guarantee Scheme end date extended to 31 March 2030 and an additional £500 million capacity recently announced, you now have more time to plan and secure growth funding for your business.

Some of our lenders

Government Backing

The 70% government guarantee transforms lending accessibility, enabling lenders to offer financing to businesses that might not qualify for standard commercial loans while providing more competitive rates.

BENEFITS

Flexible Funding

Access £25,001 to £2 million through term loans, overdrafts, asset finance, or invoice finance with terms up to 6 years - comprehensive coverage for different business needs.

BENEFITS

No Home at Risk

The scheme explicitly prohibits taking your principal private residence as security, providing crucial protection for business owners while still accessing substantial growth capital.

BENEFITS

Expert Navigation

We sort through the complexity of 60+ lenders with different rates and criteria, using smart technology to match you with providers most likely to approve your application at competitive terms.

BENEFITS

Who is Eligible?

  • Limited company or qualifying legal entity
  • Annual turnover below £45 million
  • Trading in the UK for minimum 2 years
  • More than 50% income from trading activities
  • Viable business proposition for growth
  • Not in financial difficulty or insolvency
  • Loan amounts: £25,001 to £2 million (£1m for NI Protocol businesses)
  • Terms: 3 months to 6 years (term loans/asset finance)
  • Terms: 3 months to 3 years (overdrafts/invoice finance)

How does it work?

1. Assessment: We evaluate your business requirements and eligibility, matching you with suitable lenders from our accredited panel most likely to support your growth plans.

2. Application: Our team prepares your application with all required documentation while ensuring it presents your business optimally. Lenders conduct standard commercial assessments with the benefit of government backing.

3. Funding: Once approved, you receive funding with transparent terms. You remain 100% liable for repayment, but the government guarantee has enabled better rates and terms than standard commercial lending.

How Much Does It Cost?

While GGS loans typically cost more than pure commercial lending due to guarantee fees, they often compare favorably to high-street alternatives for businesses that might struggle with standard criteria. The government backing enables access to institutional funding at rates typically reserved for lower-risk borrowers.

Interest rates vary based on your risk profile and chosen lender, ranging from base rate plus 3-8% for stronger propositions up to 15-25% annually for higher-risk businesses benefiting most from the guarantee. Upfront fees are capped at 5% of the loan amount by regulation, ensuring transparent pricing.

  • Personal Guarantees: Remain at lender discretion but often reduced compared to unsecured commercial lending thanks to government backing. Your principal residence cannot be taken as security.
  • Economic Benefit: Lenders must pass the advantage of the government guarantee to you after covering their costs, ensuring you benefit from the scheme support.
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FAQ's

FundingBay provides personalized quotes within 24 hours. The full funding timeline depends on your specific circumstances and documentation readiness, but our streamlined process and lender relationships help accelerate approvals.

Yes. Previous government support through Bounce Back Loans, CBILS, or Recovery Loan Scheme doesn’t disqualify you from GGS funding. However, previous borrowing may reduce the maximum amount available to you, and you’ll need to provide written confirmation of any subsidies received over the previous three years as these count toward allowable limits.

Yes. The Growth Guarantee Scheme was extended from March 2026 to 31 March 2030 in the 2025 Spending Review. This 4-year extension provides certainty for businesses and lenders. All terms and conditions remain unchanged—70% government guarantee, no personal residence security required, and loans from £10,000 to £2 million. Full details are available on the official government guidance page.

Typically: management accounts, business plan, asset details, bank statements, and confirmation of previous government subsidies. FundingBay guides you through requirements specific to your chosen lender.

The British Business Bank’s total financial capacity is £25.6 billion. In April 2025, an additional £500 million was added specifically for the Growth Guarantee Scheme. The scheme has already deployed £2.6 billion to over 16,000 businesses across the UK. FundingBay works with 50+ accredited lenders to compare rates and find you the most competitive terms.

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