The Growth Guarantee Scheme

The Growth Guarantee Scheme is the successor to the Recovery Loan Scheme which we successfully supported many clients with.

Recovery Loan Scheme

About the Growth Guarantee Scheme

The Growth Guarantee Scheme 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.

The Growth Guarantee Scheme can generally support facility sizes of up to £2m and provides the lender with a 70% government-backed guarantee.

The Scheme can support facility sizes of up to £2m for borrowers outside the scope of the Northern Ireland Protocol.

Borrowers in scope of the Northern Ireland Protocol may currently borrow up to £1 million unless they operate in a sector where aid limits are reduced – in which case the maximum that can be borrowed is subject to a lower cap. These include agriculture and fisheries / aquaculture.

Businesses can use the finance for any legitimate business purpose – including managing cashflow and investment. However, businesses must be able to afford to take out additional debt finance for these purposes.

The British Business Bank administers the scheme on behalf of the Secretary of State for Business and Trade.

Key features of the Growth Guarantee Scheme

The 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.

The assistance provided, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow

  • Up to £2m per business group: The maximum amount of a facility provided under the scheme is generally £2m per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1m per business group for Northern Ireland Protocol borrowers. 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: The Scheme 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. The lender’s pricing will take into account the benefit of the Government guarantee
  • Access to multiple schemes: Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2024 are not prevented from accessing GGS, but  borrowing under these schemes may reduce the maximum amount the borrower is eligible for.
  • Personal Guarantees: Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.
  • 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: Scheme backed facilities are provided at the discretion of the lender.

Growth Guarantee Scheme eligibility criteria

  • 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;
  • Viability test: The lender must consider that the borrower has a viable business proposition
  • Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings;
  • Subsidy limits: Borrowers will need to provide written confirmation that receipt of the Scheme facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received

Some benefits of using us

Wattsford Commercial Finance works with the majority of lenders approved by the British Business Bank’s Growth Guarantee Scheme.

Our business support and brokerage services include fully packaging and submitting your application in addition to ensuring the most competitive rates and terms. We will ensure that your recovery loan scheme application is prepared quickly and efficiently. At the same time, we will keep you updated on your application’s progress in order that funds are available in the shortest possible time.

Our offer

In particular, we offer all our clients a truly ‘one-stop-shop’ facility, specifically to provide you with a fully managed and professional business support and brokerage service. Our mission is to secure the most competitive funding offer for your circumstance available from the whole of the market.

Whatever your finance requirements, we offer a free, impartial, and confidential initial consultation and will quickly assess your funding options.

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