Growth Guarantee Scheme

Last updated: 11/03/2025

Growth Guarantee Scheme for UK Businesses

The Growth Guarantee Scheme (GGS) offers UK businesses access to funding from £10K up to £2 million in government-backed loans until March 2026. With a 70% government guarantee, lenders are incentivized to provide financing for various business purposes, including growth, equipment purchases, and payroll, even to those who previously benefited from COVID-19 support schemes.

What is the Growth Guarantee Scheme (GGS)?

The Growth Guarantee Scheme (GGS) is the successor to the Recovery Loan Scheme (RLS).

The Growth Guarantee Scheme is a government-supported lending initiative available to businesses across the UK. The scheme serves as a follow-up initiative to the Recovery Loans Scheme, operating under similar conditions. Applications for the Growth Guarantee Scheme began on 1st July 2024 and will remain open until 31st March 2026.

The Growth Guarantee Scheme enables UK businesses to access loans and other kinds of finance of up to £2m per business, provided they can demonstrate their ability to service the debt. The government guarantees up to 70% of the loan value, offering significant security to lenders and encouraging them to extend credit to businesses that might not meet standard lending criteria.

The funding can be used for any legitimate business purpose, including business growth, investing in marketing, purchasing business equipment and assisting with payroll.

Businesses that have already received support under existing COVID-19 guaranteed loan schemes (such as CBILS, Bounce Back and RLS loans) will still be eligible to access the growth guarantee scheme.

Types of finance available under the Growth Guarantee Scheme

A funder can provide up to £2 million in the form of one of the following facilities:

• Unsecured loan
• Invoice finance 
• Hire purchase
• Asset-based lending

Am I eligible for the Growth Guarantee scheme?

To be eligible for the Growth Guarantee Scheme, you’ll need to meet the following criteria:

• Turnover limit: The scheme is open to businesses with a turnover of up to £45m (on a group basis, where part of a group).
• Business in difficulty: The company must not be a business in difficulty, including not being in relevant insolvency proceedings.
• Business has been impacted by coronavirus.
• Minimum of 2 years’ trading history.
• Business is trading in the UK.
• Loan is for business purposes (i.e. working capital and investment or to support trading in the UK).

To help as many businesses as possible, funders will need to look at a business’s performance over a longer period of time to ascertain whether it has a viable business proposition, regardless of the impact of COVID-19.

How much can I borrow under the Growth Guarantee Scheme?

Businesses can borrow up to £2 million per business under the Growth Guarantee Scheme, covering business loans, invoice finance, and asset finance. The borrowing limits are consistent with those under the Recovery Loan Scheme for businesses in Great Britain.

Businesses in Great Britain can apply for:

• Business secured or unsecured loan amounts between £25,001 and £2 million
• Invoice finance or asset finance between £1,000 and £2 million

What could I use the Growth Guarantee Scheme for?

You can use the growth guarantee scheme to help your business:

• Improve Cash Flow - Improved cash flow ensures that businesses have the flexibility to respond to unexpected one-off costs and can maintain a steady cash flow, which helps cover day-to-day expenses.
• Grow Your Business - Access to additional capital can fuel business growth, enabling companies to expand their operations, enter new markets, or increase product lines.
• Purchase Equipment - Financing provides businesses the opportunity to acquire essential business equipment and machinery, which they might otherwise be unable to afford.
• Pay a One-Off Cost - Some expenses, such as settling an unexpected tax bill, a legal fee, or upgrading a core system, require a significant one-time payment. Financing helps companies manage these lump-sum expenses without impacting cash flow, allowing them to continue normal operations.
• Help with Payroll - Financing can help cover payroll during lean months or as a business scales, ensuring employees are paid on time and allowing businesses to attract and retain top talent without financial strain.
• Invest in Marketing - Effective marketing is essential for growth, brand awareness, and customer acquisition. Financing marketing costs allows businesses to launch new marketing campaigns, expand reach, and improve customer engagement through digital ads, social media, and other channels, ultimately driving sales and brand presence.

Advice for applying for the Growth Guarantee Scheme

The Growth Guarantee Scheme is an excellent opportunity for businesses seeking funding to expand. However, the application process requires thorough preparation. As your finance broker, we ensure your business case is strong, assisting with the financial documentation and growth plans lenders require.

Creditworthiness is still essential even under this scheme. If you have credit challenges, we help you address them to strengthen your application. With access to multiple lenders, we’ll match you with the right provider, securing competitive rates and terms. 

How to apply for the Growth Guarantee Scheme?

MAF Finance Group can compare finance offerings from a wide panel of lenders to find the best option for you.

If you would like to get a quote or need further information, simply fill in the form and we will contact you. If you want to speak to someone directly, you can call us on 0115 958 6872 and a member of our team will be happy to speak to you. Alternatively, email us at [email protected].