The Government has announced a significant expansion of the Growth Guarantee Scheme (GGS), providing more opportunities for small and medium-sized businesses to access finance.
Delivered through the British Business Bank, the scheme helps businesses secure commercial lending by providing participating lenders with a 70% government-backed guarantee.
The latest changes are expected to increase lending capacity, broaden eligibility and support thousands more UK businesses over the coming years.
What Is the Growth Guarantee Scheme?
The Growth Guarantee Scheme is designed to improve access to finance for UK SMEs that may otherwise struggle to secure commercial lending.
Rather than lending directly, the Government guarantees 70% of eligible loans, reducing the risk for lenders while enabling businesses to access the funding they need to grow.
Loans of up to £2 million are available through accredited lenders, subject to normal lending criteria.
What’s Changing?
The latest expansion includes several important improvements.
More Funding Available
By 2028/29, the scheme will support an additional £2 billion of SME lending every year.
This will increase total annual lending supported through the scheme from:
- £1.35 billion
- to £3.35 billion
More than doubling the current level of support.
Longer Loan Terms
Eligible loans of up to £1.1 million can now be repaid over a maximum of:
- 10 years
rather than the previous six-year limit.
Longer repayment periods may help businesses improve cash flow while investing for future growth.
More Businesses Can Apply
The turnover threshold for eligible businesses is increasing.
Previously, businesses needed annual turnover below:
- £45 million
The new limit increases this to:
- £54 million
This means more medium-sized businesses will now qualify for support.
How Many Businesses Could Benefit?
The British Business Bank estimates the expanded scheme will support:
- Around 20,000 businesses each year by 2028/29.
This represents an increase of approximately 150% compared with current participation levels.
Since launching in 2022, the scheme has already supported:
- More than £3.7 billion in lending.
- Around £2.5 billion of this has gone to businesses located outside London and the South East.
Why This Matters for Growing Businesses
Access to finance remains one of the biggest challenges facing growing businesses.
Funding can help businesses:
- Invest in new equipment.
- Recruit additional staff.
- Expand premises.
- Improve cash flow.
- Launch new products or services.
- Support business growth.
Government-backed lending schemes can provide valuable support where traditional finance may be more difficult to obtain.
Is the Growth Guarantee Scheme Right for Your Business?
Whether the scheme is suitable depends on your individual circumstances, including:
- Your funding requirements.
- Cash flow forecasts.
- Existing borrowing.
- Business growth plans.
Reviewing your options before applying can help ensure you choose the most appropriate funding solution.
Final Thoughts
The expansion of the Growth Guarantee Scheme is welcome news for SMEs seeking access to finance.
With increased funding, longer repayment periods and wider eligibility, more businesses could benefit from government-backed lending over the coming years.
If you’re considering borrowing to invest in your business, improve cash flow or fund future growth, we’d be happy to help you review your options and prepare for finance applications.
📞 01527 368220
📧 info@ojwassociates.co.uk
