About this programme
The Growth Guarantee Scheme (GGS) is the successor to the Recovery Loan Scheme, run by the British Business Bank on behalf of the Secretary of State for Business and Trade. It exists to support access to finance for UK smaller businesses looking to invest and grow, and launched with accredited lenders on 1 July 2024.
GGS does not lend money directly. It gives participating lenders a 70% government-backed guarantee against the outstanding balance of a facility, which lets those lenders offer debt finance to viable SMEs they might not otherwise consider. If a lender can offer a business a commercial facility on better terms without the guarantee, it is required to do so instead. The borrower always remains 100% liable for repaying the facility — the guarantee sits between the lender and government, not between the borrower and government.
The scheme supports a wide range of debt products — term loans, overdrafts, asset finance, invoice finance and asset-based lending — through a network of 55 accredited lenders, from high street and challenger banks to asset-based and specialist local lenders. Not every lender offers every product.
On 12 July 2026 the Chancellor announced an expansion of GGS unlocking a further £6.5bn of market lending over the next four years, alongside longer terms (up to ten years for term loans and asset finance) and a turnover eligibility limit rising from £45m to £54m. The British Business Bank was, as of the announcement, still working with accredited lenders to operationalise these changes; the scheme continues to run under its existing terms in the meantime.
How it works
A business approaches an accredited GGS lender directly (ideally via the lender's own website) — there is no separate application to the British Business Bank itself.
The lender assesses the application using its own standard credit and fraud checks. If it can offer a commercial facility on equivalent or better terms without the guarantee, it must do so instead of using GGS.
If the business is eligible and a commercial facility isn't available on the same terms, the lender may use the GGS guarantee to support the facility. Decision-making on eligibility and lending is fully delegated to the accredited lender — the British Business Bank does not decide individual cases.
Facility sizes generally run up to £2m per business group (outside the scope of the Northern Ireland Protocol), with minimums starting at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts.
Terms run from three months up to six years for term loans and asset finance, and up to three years for overdrafts and invoice finance. Interest rates and fees are set by the individual lender and vary by proposal; lenders are required to pass on the economic benefit of the guarantee after accounting for the scheme fee they pay.
The GGS guarantee itself is a subsidy under UK subsidy control rules. Borrowers must confirm in writing that accepting a GGS facility will not take them over the permitted subsidy limit for a rolling three-year period, and lenders must provide a written statement confirming the amount and type of subsidy received.
Who can apply
The business (and its wider group, if part of one) must have annual turnover not exceeding £45m, be trading in the UK with the core of its operations in the UK, and generate more than 50% of turnover from trading activity (charities and further-education colleges are exempt from the 50% trading-income test).
The lender must consider the borrowing proposal viable. The business must not be 'in difficulty', including not being in relevant insolvency proceedings.
The maximum a business group can borrow is affected by any previous CBILS, CLBILS, BBLS or RLS facility taken out before 30 June 2024, and by any other public subsidy already received, since GGS counts against the same subsidy ceiling.
How to apply
- Identify an accredited GGS lender from the British Business Bank's published lender list — not every lender offers every product, so check which lenders offer the type of finance needed (term loan, overdraft, asset finance, invoice finance, asset-based lending).
- Approach that lender directly, the same way you would apply for any commercial facility.
- The lender runs its standard credit and fraud checks and assesses whether a commercial facility (without the guarantee) can be offered on equivalent or better terms; only if it cannot will it consider using GGS.
- Provide whatever evidence the lender asks for to assess affordability and eligibility, including confirmation of your subsidy position.
- GGS eligibility and terms are decided lender-by-lender, not centrally by the British Business Bank.
Frequently asked
What is the Growth Guarantee Scheme?
GGS is a British Business Bank scheme, successor to the Recovery Loan Scheme, that gives accredited lenders a 70% government-backed guarantee on qualifying debt facilities so they can lend to viable smaller UK businesses they might not otherwise support. It launched on 1 July 2024 and covers term loans, overdrafts, asset finance, invoice finance and asset-based lending.
How much can a business borrow under GGS?
Facility sizes generally go up to £2m per business group outside the scope of the Northern Ireland Protocol (lower caps apply for Northern Ireland Protocol borrowers, including sector-specific caps for agriculture and fisheries/aquaculture). Minimum facility sizes start at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts.
Do I apply to the British Business Bank directly?
No. GGS is delivered entirely through accredited lenders — you approach a lender directly, ideally via its own website, and that lender decides eligibility and terms. The British Business Bank does not process individual applications.
Am I still liable for the full loan if it is government-guaranteed?
Yes. The 70% guarantee runs between the government and the lender, not the borrower. Your business remains 100% liable for repaying the facility in full, and lenders can still take personal guarantees (though never over a principal private residence) as part of their normal lending practice.
What can a GGS-backed facility be used for?
Any legitimate business purpose, including managing cashflow or funding investment and growth, as long as the business can demonstrably afford the additional debt.
What fees and interest rates apply?
Rates and fees are set by the individual lender based on the specific lending proposal and are not published centrally by the British Business Bank. The lender’s pricing takes into account the benefit of the government guarantee and the fee the lender itself pays for it.
Does an existing CBILS, BBLS or RLS facility affect eligibility?
It can. A CBILS, CLBILS, BBLS or RLS facility taken out before 30 June 2024 does not prevent a business from accessing GGS, but borrowing under those schemes counts towards the same rolling three-year subsidy limit at business-group level, which can reduce the maximum amount you are eligible to borrow under GGS.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.