The Growth Guarantee Scheme
A government-backed guarantee that helps lenders say yes to viable UK businesses they could not otherwise support on the same terms. Asset finance is included, from £1,000.
- Asset finance facilities from £1,000, terms up to 6 years
- Up to £2m per business group
- Sole traders, partnerships and limited companies all eligible
- Scheme runs to 31 March 2030
This is the most misunderstood part of the scheme, so it is worth being blunt about it. The government gives the lender a 70% guarantee against the outstanding balance. Your business remains 100% liable for repaying the facility in full. GGS is not insurance for the borrower, it does not write off any part of your debt, and it does not reduce your obligation to repay. Anyone describing it otherwise has misunderstood it.
What the Growth Guarantee Scheme is
The Growth Guarantee Scheme is a UK government-backed lending scheme administered by the British Business Bank. It launched on 1 July 2024 as the successor to the Recovery Loan Scheme, and at the 2025 Spending Review it was extended to run until 31 March 2030. In July 2026 the Chancellor announced a further increase in its capacity.
The mechanism is simple. An accredited lender assesses your application as they normally would. If they would like to lend but cannot get comfortable on conventional terms, the scheme gives them a government-backed guarantee covering 70% of the outstanding balance. That improves the risk position enough for some deals to proceed that otherwise would not.
There is an important consequence of how the rules are written: accredited lenders should only offer finance through GGS where they are unable to offer a facility on equivalent or better terms without the guarantee. GGS is not a discount product you ask for by name. It is a mechanism that widens what is possible when a conventional deal is not available.
Why this matters more than it sounds
The SME lending market is bigger and broader than most business owners assume — and a good deal less dominated by the high street than it was.
The British Business Bank’s Small Business Finance Markets Report 2026 puts gross SME bank lending at £68 billion, a 9% increase, with around half of smaller businesses using some form of external finance. Credit cards (19%) and overdrafts (16%) lead, with leasing and hire purchase used by 12%.
The most telling figure is the split in who is doing the lending. Challenger and specialist banks now account for 60% of gross SME bank lending, up from 39% in 2012. The centre of gravity has moved decisively away from the high street — which means a business that asks its own bank, gets a no, and stops there has tested a shrinking minority of the market.
Awareness is improving but incomplete: 62% said they knew where to obtain information on the different types of finance available, five percentage points better than the year before, but that still leaves a substantial minority who did not. A scheme like GGS exists precisely to widen what lenders can support. It only helps the businesses that get as far as a conversation.
Source: British Business Bank, Small Business Finance Markets Report 2026 (published March 2026), drawing on the 2025 Business Finance Survey conducted by Ipsos among 1,734 smaller businesses.
The scheme was expanded in July 2026
On 12 July 2026 the Chancellor announced a significant increase in the scheme’s capacity, unlocking a further £6.5 billion of lending over four years. Three changes matter for asset finance:
- Facility terms of up to ten years for term loans and asset finance, where the maximum had been six.
- Turnover eligibility raised from £45 million to £54 million, bringing larger scaling businesses into scope.
- Substantially more capacity, supporting an estimated 33,000 businesses.
A ten-year term on asset finance is a meaningful change. On a long-life asset — a building, heavy plant, a grain store — spreading repayment across ten years rather than six materially lowers the monthly cost, though it increases the total interest paid. Whether that trade is right depends on the asset’s working life and what the cash does in the meantime.
The British Business Bank has said it is working with accredited lenders to operationalise the changes. Until an individual lender has adopted them, the previous terms — a six-year maximum and £45 million turnover ceiling — still apply to that lender’s facilities. The table below reflects the scheme rules as currently published. Ask us and we will tell you which lenders have implemented the new terms.
Key facts at a glance
| Guarantee | 70% to the lender. Borrower remains 100% liable. |
|---|---|
| Products covered | Term loans, overdrafts, asset finance, invoice finance, asset-based lending |
| Minimum facility | £1,000 for asset finance, invoice finance and asset-based lending £25,001 for term loans and overdrafts |
| Maximum facility | £2m per business group (outside the Northern Ireland Protocol) NI Protocol: £1m general · £285,000 primary production agriculture · £170,000 aquaculture and fisheries |
| Maximum term | 6 years for term loans and asset finance 3 years for overdrafts and invoice finance |
| Turnover limit | Up to £45m per annum, measured across the business group |
| Eligible entities | Sole traders, limited companies, limited partnerships, LLPs, co-operatives and community benefit societies |
| Start-ups | Eligible at the lender’s discretion |
| Personal guarantees | Permitted at all facility sizes. Your principal private residence cannot be taken as security. |
| Upfront fees | Lender upfront fees, including any broker fee, capped at 5% |
| Who decides | The accredited lender. Decisioning is fully delegated — not made by the British Business Bank. |
| Scheme end date | 31 March 2030 |
Figures reflect published British Business Bank guidance as at August 2026. Scheme terms can change — check the British Business Bank’s own guidance for the current position.
Asset finance under the scheme
Asset finance is one of the products GGS explicitly supports, and it is the one we work with every day. Two details make it more useful than people expect.
The minimum facility is £1,000 — far lower than the £25,001 floor that applies to term loans and overdrafts. That puts a great deal of ordinary equipment comfortably within scope rather than only major capital purchases.
And the maximum term is six years, matching term loans and double the three years available on overdrafts and invoice finance. On a machine with a long working life, that spreads the cost considerably further.
Not every accredited lender offers every product type under the scheme, so which funders can actually support an asset finance facility varies. That is a large part of what we do: knowing which accredited lenders are active in asset finance, what they will look at, and whether your deal is better placed inside the scheme or outside it.
Where it helps, and where it does not
It helps where a business is fundamentally viable but sits just outside a lender’s conventional appetite — thinner trading history than they would like, a sector they are cautious on, limited security to offer, or a lumpy but perfectly healthy cash flow. The guarantee can be the difference between a decline and an approval.
It does not help if the underlying proposition is not viable. The lender must still consider your borrowing proposal viable, and businesses in difficulty or in insolvency proceedings are expressly excluded. The guarantee widens a lender’s appetite; it does not replace their credit assessment, and every applicant still goes through standard credit, fraud, anti-money-laundering and know-your-customer checks.
It is also not automatically the cheapest route. If you qualify for a good conventional facility, that is what you should be offered — the scheme rules point lenders that way. We will tell you plainly which side of that line we think your deal falls on.
Growth Guarantee Scheme: common questions
What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme (GGS) is a UK government-backed lending scheme administered by the British Business Bank. It launched on 1 July 2024 as the successor to the Recovery Loan Scheme, and was extended at the 2025 Spending Review to run until 31 March 2030. It gives accredited lenders a 70% government-backed guarantee against the outstanding balance of a facility, which allows them to lend to viable smaller businesses they could not otherwise support on the same terms. It supports term loans, overdrafts, asset finance, invoice finance and asset-based lending. Importantly, the guarantee protects the lender, not the borrower — your business remains 100% liable for repaying the facility in full.
Am I eligible for the Growth Guarantee Scheme?
Your business must be carrying out trading activity in the UK with the core of its operations here, generate more than 50% of turnover from trading activity, have group turnover of no more than £45 million a year, have a borrowing proposal the lender considers viable, and not be a business in difficulty or in relevant insolvency proceedings. Sole traders, limited companies, limited partnerships, LLPs, co-operatives and community benefit societies are all eligible entity types. Banks, building societies, insurers, public sector bodies, state-funded schools and certain mining and quarrying activities are excluded — though insurance brokers are eligible. Eligibility decisions are fully delegated to the accredited lender, not the British Business Bank.
How much can I borrow under the Growth Guarantee Scheme?
Up to £2 million per business group for businesses outside the scope of the Northern Ireland Protocol. For businesses within that scope the caps are lower: £1 million generally, £285,000 for primary production agriculture, and £170,000 for primary production aquaculture and fisheries. Minimum facility sizes start at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts. A GGS facility counts as a subsidy, so if your business has received previous subsidy that may reduce the maximum you can borrow.
Has the Growth Guarantee Scheme changed in 2026?
Yes. On 12 July 2026 the Chancellor announced an expansion of the scheme, unlocking a further £6.5 billion of lending over four years. For asset finance the two most significant changes are that facility terms can run up to ten years, where the previous maximum was six, and that turnover eligibility rises from £45 million to £54 million. The British Business Bank has said it is working with accredited lenders to operationalise these enhancements, so until a given lender has adopted them the previous limits still apply to that lender’s facilities. The scheme continues to run to 31 March 2030.
Does the Growth Guarantee Scheme cover asset finance?
Yes. Asset finance is one of the products the scheme explicitly supports, alongside term loans, overdrafts, invoice finance and asset-based lending. Asset finance facilities under GGS start from a minimum of £1,000 and can run for terms of up to six years — the same maximum term as GGS term loans, and longer than the three years available on overdrafts and invoice finance. Not every accredited lender offers every product type, so which lenders can support an asset finance facility under the scheme varies.
Am I still liable for the debt under the Growth Guarantee Scheme?
Yes, entirely. This is the most commonly misunderstood feature of the scheme. The British Business Bank’s own wording is that your business remains 100% liable for repayment of the facility. The 70% guarantee is given to the lender, protecting them against a portion of their loss if the facility defaults — it is not insurance for the borrower and it does not reduce, write off or share your obligation to repay. If anyone presents GGS as government-backed borrowing that you are only partly liable for, they have it wrong.
Can a sole trader get a Growth Guarantee Scheme facility?
Yes. Sole traders are an explicitly eligible entity type under the scheme, along with limited companies, limited partnerships, LLPs, co-operatives and community benefit societies. The same criteria apply: UK trading activity, more than 50% of turnover from trading, group turnover under £45 million, a proposition the lender considers viable, and not being a business in difficulty. As a sole trader your personal credit position will carry more weight in the lender’s assessment, since there are no company accounts to review.
Will I need to give a personal guarantee for a GGS facility?
Possibly. Lenders are permitted to take personal guarantees on GGS facilities of any size where doing so is part of their normal lending practice. There is one significant borrower protection: lenders cannot take your principal private residence as security under the scheme. A personal guarantee still means you are personally liable for the amount guaranteed if the business defaults, and the lender will normally pursue business assets before calling on it. Take independent legal advice before signing one.
Can I use the Growth Guarantee Scheme to refinance existing debt?
In certain circumstances, yes. GGS can be used to refinance existing commercial facilities where the business is seeking to put itself on a more stable financial footing or improve working capital, and it can be used to refinance existing Bounce Back Loan, CBILS or Recovery Loan Scheme facilities. Any refinance is treated as a brand new GGS application and must meet both the scheme criteria and the lender’s own criteria. Refinancing can be arranged with your existing lender or a different accredited one, and can be done with or without an increase in the original borrowing.
Is a Growth Guarantee Scheme facility cheaper than normal borrowing?
Not automatically, and it is worth understanding why. Accredited lenders are only supposed to offer finance through GGS where they could not offer a facility on equivalent or better terms without the guarantee — so if you qualify for a good conventional deal, that is what you should be offered. Where GGS is used, lenders are required to pass on the economic benefit of the guarantee to the borrower after accounting for the scheme lender fee they must pay. Rates and fees vary by lender and proposal. Upfront fees charged by the lender, including any broker fee, are capped at 5% under the scheme.
When does the Growth Guarantee Scheme end?
The scheme is open for applications and currently runs until 31 March 2030, following an extension announced at the 2025 Spending Review. In July 2026 the Chancellor announced a further increase in the scheme’s capacity as part of a wider package of support for smaller businesses. Scheme terms can change, so check the British Business Bank’s published guidance for the current position before relying on any specific figure.
Find out where you stand
Tell us what you are buying and roughly where the business is at. We will tell you honestly whether the scheme is the right route, or whether a conventional facility would serve you better.
The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business and Trade. The scheme is available only through British Business Bank accredited lenders, and all eligibility and lending decisions are fully delegated to those lenders. CW Asset Finance is a credit broker, not a lender, and is not itself an accredited lender under the scheme. We may receive a commission from the lender that funds your agreement. The 70% guarantee is provided to the lender; the borrower remains 100% liable for repayment of the facility at all times. All finance is subject to status, affordability, scheme eligibility and lender approval. Nothing on this page is a quote or an offer of finance, and no outcome is guaranteed. Scheme terms and figures reflect published guidance as at August 2026 and are subject to change. CW Asset Finance is an Appointed Representative of Rural Finance Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630701).