On April 13, 2025, the Chancellor announced a significant funding boost to support smaller businesses across the UK. The Growth Guarantee Scheme will provide approximately £500 million in additional lending capacity, helping SMEs manage cashflow challenges – particularly those impacted by recent changes to global tariff rates.
This latest government-backed initiative is designed to improve access to finance for UK-based smaller businesses, enabling them to invest, expand, or stabilise their operations during uncertain trading conditions.
What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme (GGS) is the successor to the Recovery Loan Scheme (RLS). It officially launched on 1 July 2024 and is administered by the British Business Bank on behalf of the Secretary of State for Business and Trade.
Through accredited lenders, GGS offers a wide range of finance options including:
SMEs can access funding for any legitimate business purpose, such as managing cashflow, purchasing equipment or stock, or investing in growth projects. However, businesses must demonstrate they can responsibly manage additional debt finance.
Key Features of the Growth Guarantee Scheme
Facility Size: Up to £2 million per business group in most of the UK; up to £1 million for businesses within the Northern Ireland Protocol.
Product Range: From £1,000 for asset finance and invoice finance, to £25,001 for term loans and overdrafts.
Term Length:
Government-Backed Guarantee: Covers 70% of the loan (to the lender) if the borrower defaults – businesses remain 100% liable.
Flexible Lending Criteria: Lenders apply their own commercial decision-making processes and may offer standard finance if better terms are available.
Eligibility:
Note: Businesses who previously accessed CBILS, CLBILS, BBLS, or RLS can still apply for GGS, though existing facilities may impact the eligible borrowing amount.
Green Growth Guarantee Scheme Pilot
A pilot initiative under the GGS is currently being tested to support businesses that are investing in sustainable and green assets, reinforcing the government’s commitment to supporting the transition to a low-carbon economy.
Apply here for Finance Through the Growth Guarantee Scheme?
At Clear Business Finance, we help UK SMEs navigate and access funding through government-backed schemes like GGS. Whether you’re looking to manage short-term cashflow issues or finance long-term growth, our expert team can guide you through the options available and connect you with accredited lenders.
“With the Growth Guarantee Scheme, SMEs have a real chance to secure vital funding—whether it’s for stability or expansion. It’s a timely boost in a changing market.”
Jordan Barnes
Senior Broker Manager
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