Access to finance can make a significant difference when a business needs to invest, manage cashflow or take its next step towards growth.
The announced expansion of the Growth Guarantee Scheme (GGS) aims to give more UK businesses access to funding, with additional lending capacity, longer repayment terms for certain facilities and a higher turnover eligibility limit.
For business owners, understanding how the scheme works can help when comparing funding options.
What changes have been announced?
On 12 July 2026, the Chancellor announced an expansion of the Growth Guarantee Scheme, intended to unlock a further £6.5 billion of lending over four years and support an estimated 33,000 businesses across the UK.
The announced enhancements include:
- Longer finance terms: greater flexibility to offer terms of up to ten years for term loans and asset finance.
- A higher turnover limit: an increase in annual turnover eligibility from £45 million to £54 million.
- Additional lending capacity: more support for businesses seeking finance to invest and grow.
The British Business Bank is working with accredited lenders to introduce these changes. Its published guidance continues to list the existing scheme terms, so businesses should confirm which enhancements are available with their chosen lender before applying.
You can read the British Business Bank’s announcement here.
What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme supports access to finance for smaller UK businesses. It launched on 1 July 2024 as the successor to the Recovery Loan Scheme.
Rather than lending directly to businesses, the scheme provides accredited lenders with a 70% government-backed guarantee, helping them consider lending proposals they might otherwise be unable to support.
The guarantee protects the lender. Your business remains responsible for repaying 100% of the borrowing.
Applications are assessed by the lender, and approval depends on its credit checks, affordability assessment and lending criteria.
What can the funding be used for?
GGS-backed finance can be used for legitimate business purposes, including managing cashflow and funding investment.
Depending on the lender and your requirements, the scheme supports:
- Term loans for investment, expansion or working capital.
- Overdrafts to help manage short-term cashflow requirements.
- Asset finance for equipment, machinery or vehicles.
- Invoice finance to release funding against unpaid customer invoices.
- Asset-based lending secured against eligible business assets.
Not every accredited lender offers every product. The appropriate facility will depend on what you need to fund and how your business can manage repayments.
How much can a business borrow?
The scheme generally supports facilities of up to £2 million per business group for borrowers outside the scope of the Northern Ireland Protocol, as amended by the Windsor Framework.
For borrowers within scope, the limit is generally £1 million, although different limits may apply. Lower caps can apply to certain sectors, including agriculture, fisheries and aquaculture.
Scheme minimums start at:
- £25,001 for term loans and overdrafts.
- £1,000 for asset finance, invoice finance and asset-based lending.
These are scheme limits. Individual lenders may apply different minimum lending amounts, and the amount offered will depend on eligibility and affordability.
Who is eligible?
Under the existing published criteria, applicants generally need to:
- Have annual turnover of no more than £45 million, assessed on a group basis where applicable.
- Carry out trading activity in the UK.
- Generate more than 50% of their income from trading activity, with exceptions for certain organisations.
- Have a business proposition the lender considers viable.
- Meet the scheme’s requirements concerning businesses in difficulty and insolvency.
- Remain within the applicable subsidy limits.
The announced increase to £54 million turnover is intended to broaden access. Availability should be checked with the lender while the changes are introduced.
Meeting the scheme criteria does not guarantee an offer of finance.
What about repayment terms, costs and guarantees?
The existing published terms allow term loans and asset finance facilities from three months to six years. Overdrafts, invoice finance and asset-based lending facilities can run from three months to three years.
The announced expansion introduces the possibility of terms of up to ten years for term loans and asset finance, subject to implementation and lender availability.
Interest rates and fees vary between lenders and lending proposals. Businesses should compare the repayment schedule, total cost and any security requirements before accepting an offer.
Lenders may request a personal guarantee. A principal private residence cannot be taken as security under the scheme, but a personal guarantee remains a commitment that should be understood before signing.
Can you apply if you have used a previous government-backed scheme?
Previous borrowing through CBILS, CLBILS, the Bounce Back Loan Scheme or the Recovery Loan Scheme does not automatically prevent access to GGS.
However, earlier borrowing and subsidies may affect the amount available. Your lender will need details of relevant support received by your business and its wider group.
Exploring finance with Clear Business Finance
The Growth Guarantee Scheme is one route to business funding. A commercial facility may offer more suitable terms, depending on your circumstances.
At Clear Business Finance, we can help you explore funding options based on your business, the amount required and what you want to achieve.
Speak to our team about your funding requirements and whether GGS-backed finance could be suitable for your business.
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Finance is subject to status, eligibility and lender approval. Scheme terms and lender availability may change