Empowering SMEs: How the Growth Guarantee Scheme is Making a Difference

SME's are the backbone of the UK economy, driving innovation, creating jobs, and fostering community growth. Access to finance is crucial for these businesses to thrive, and that’s where the Growth Guarantee Scheme (GGS) comes in. We’re proud to share that we've recently funded a £50,000 GGS loan for a great client, helping them take the next step in their business journey.

🚀 What is the Growth Guarantee Scheme?

The Growth Guarantee Scheme is a government-backed initiative designed to help UK small businesses access the finance they need for investment and growth. Launched on July 1, 2024, the scheme partners with accredited lenders to offer a variety of financial products, including term loans, overdrafts, asset finance, invoice finance, and asset-based lending.

The scheme typically supports loans of up to £2 million per business, providing lenders with a 70% government-backed guarantee. For businesses subject to the Northern Ireland Protocol, the maximum loan amount is £1 million, with further reduced caps for sectors like agriculture and fisheries, where aid limits are stricter.

Businesses can use the finance for any legitimate purpose, such as managing cash flow or making investments, provided they can afford to take on additional debt. The British Business Bank administers the scheme on behalf of the Secretary of State for Business and Trade.

💼 GGS Loan Features That Benefit Your Business

The Growth Guarantee Scheme offers a range of features designed to support your business's financial needs:

• 💡 Flexible Usage: The funds can be used for any legitimate business purpose, whether you’re covering operational costs, investing in new equipment, or launching a new project. The flexibility ensures that the loan meets your specific business needs.
• 💰 Loan Amounts: The scheme allows businesses to borrow between £10,000 and £2,000,000. This wide range of loan amounts means that both small and larger SMEs can find the right level of support.
• 🛡️ Government-Backed Guarantee: One of the most significant benefits of the GGS is the 70% government-backed guarantee. This reduces the risk for lenders, making it easier for businesses to access the finance they need.
• 🏠 Security Assurance: Unlike many traditional loans, the GGS does not require your Principal Private Residence to be taken as security. This feature provides peace of mind, knowing that your home is protected.
• 🔄 Flexible Repayments: With repayment terms of up to 6 years, businesses have the flexibility to choose a repayment schedule that aligns with their cash flow and financial planning.
• 💸 Competitive Rates: The GGS offers competitively fixed interest rates, ensuring that your business can access affordable finance.
• ✅ Eligibility: The scheme is open to SMEs with a turnover of up to £45 million, making it accessible to a broad range of businesses.
• 🔄 Previous Support: If your business has previously received funding from CBILS, Bounce Back, or RLS, you’re still eligible to apply for a GGS loan. This inclusivity ensures that even businesses that have already sought financial assistance can continue to grow.

🌱 How the GGS is Making an Impact

This recent £50,000 GGS loan we funded for our client is just one example of how this scheme is helping businesses across the UK. Whether it’s covering costs during a challenging period or providing the capital needed to seize a growth opportunity, the GGS is designed to be a versatile and reliable source of funding.

By making finance more accessible and offering features tailored to the needs of SMEs, the Growth Guarantee Scheme is playing a crucial role in fostering business growth and innovation. If your business is looking to take the next step, the GGS might be the perfect solution to help you achieve your goals.

Why not get in touch with the team to see how we can help you?