How the Growth Guarantee Scheme Works
The Growth Guarantee Scheme gives your lender a 70% guarantee from the government, so the lender recovers most of the balance if you default. It runs through the British Business Bank and replaced the Recovery Loan Scheme.
You stay 100% liable for every penny, though. The guarantee protects the lender, not you, and it doesn’t lower your APR, which is the single most misread part of the scheme.
That’s the catch the name hides from you.
You can borrow up to £2 million per group under the scheme, which runs to 31 March 2030. It covers term loans, overdrafts, asset finance and invoice finance, so it’s a guarantee laid over many products, not one.
Who Can Apply for the GGS
You can apply if you’re a UK business with group turnover up to £45 million, trading, and viable rather than in difficulty. Most small and medium businesses across sectors qualify.
The lender still tests whether you can afford the facility, so your credit file and cash flow matter as much as the guarantee. A weak file can still get you declined, guarantee or not.
That’s the check the guarantee can’t pass for you.
Picture your accountant uploading the management accounts at quarter-end while the lender tests affordability against your application.
What the Guarantee Does and Doesn’t Do for You
You don’t get a cheaper rate just because the scheme backs your loan. The lender sets your APR and fees on commercial terms, with the Bank of England base rate of 3.75% as the floor.
What the scheme does is help a lender say yes when you’d otherwise be short on security. It widens access, it doesn’t discount the price.
That’s the gap it closes for you, not the price.
The lender can’t take your home, your principal private residence, as security under the scheme, though it can still ask you for a personal guarantee.
How to Apply Through an Accredited Lender
You apply through an accredited lender, not the British Business Bank itself. Dozens of lenders are accredited, from the high-street banks to alternative lenders like Funding Circle.
You’ll pick the lender first, then the facility, because each accredited lender sets its own rates, criteria and which GGS products it offers. Your existing bank is a sensible first call for your application.
That’s the catch, you can’t go direct.
Picture your accountant calling your bank’s lending team on a Monday to check they still run GGS facilities.
Before You Accept a GGS Offer
You’re 100% liable, so read the personal guarantee terms before you sign. Check the rate, the fees and any early repayment charge against a standard commercial loan you could get without the scheme.
We’d compare two or three accredited lenders, because the guarantee doesn’t standardise the price and your APR can vary widely between them. The cheapest yes isn’t always the GGS one.
That’s the comparison that saves you money.
Picture your accountant emailing you three GGS quotes at month-end so you can weigh the personal guarantee against the rate.
Growth Guarantee Scheme FAQs
Is a Growth Guarantee Scheme loan cheaper than a normal loan?
Not necessarily. The guarantee protects the lender, not you, so the lender prices the facility on its own commercial terms rather than passing the guarantee on as a discount. What the scheme does is help a lender approve a viable business that would otherwise be short on security. Always compare a GGS offer against a standard commercial loan, because the standard loan is sometimes cheaper.
Can the lender take my house under the GGS?
No. Scheme rules prohibit a lender from taking your principal private residence, your main home, as security for a GGS facility, regardless of the loan size. The lender can still require a personal guarantee, which makes you personally liable for the debt, but that guarantee cannot be secured against your main home under the scheme.
How do I apply for the Growth Guarantee Scheme?
You apply through an accredited lender, not the British Business Bank directly. Dozens of lenders are accredited, including the high-street banks and alternative lenders such as Funding Circle. Each sets its own rates, eligibility and which GGS facility types it offers, so it’s worth approaching more than one. Your existing bank is usually a sensible first call.
Who is eligible for the GGS?
The scheme is open to UK businesses with a group annual turnover of up to £45 million that are trading and viable rather than in difficulty. The facility must be for a legitimate business purpose, and the lender still assesses affordability and your credit history. The scheme is currently funded to run until 31 March 2030.
How we reviewed the Growth Guarantee Scheme
What we covered. We explain how the UK Growth Guarantee Scheme works in 2026: the 70% lender guarantee, who is eligible, what the guarantee does and doesn’t do for the borrower, and how to apply. We don’t rely on comparison-site summaries or aggregator data.
Data sources. Scheme rules, eligibility and limits were checked against primary sources in June 2026, including the British Business Bank, accredited lender pages, and the Bank of England base rate of 3.75%.
How we handle gaps. Where a scheme rule or limit changes, we verify it against the British Business Bank rather than carry an older figure forward.
Update cadence. We re-verify this page at least monthly, and whenever the scheme changes its limits or rules. The verification date reflects the most recent full review. Some links on this page are affiliate links, see our editorial policy.
Regulatory note. This page is editorial content, not regulated financial advice. The scheme is delivered by accredited lenders on commercial terms, and credit is subject to status and approval. Compare offers directly with lenders before you apply.