Growth Guarantee Scheme
By David Griffiths
The Growth Guarantee Scheme (GGS) is a UK government initiative aimed at boosting lending to small and medium-sized enterprises (SMEs). Through this scheme, the government provides a 70% guarantee to lenders on loans extended to eligible businesses. It’s important to highlight that this guarantee does not cover any associated interest or fees.
Lenders participating in the GGS must confirm that they would have been unable to provide financing under their standard commercial terms or would have only been able to do so at a higher interest rate.
By extending the range of products that lenders can offer, the GGS allows them to support businesses they previously could not, whether due to credit scores, trading history, turnover, or homeowner status.
Is My Business Eligible for the GGS?
The Growth Guarantee Scheme is primarily designed for small businesses. To be eligible, your business must meet the following criteria:
Turnover: Must be below £45 million.
Business Type: Limited companies, sole traders, limited liability partnerships, and cooperative societies are all eligible, provided they have been trading for over two years.
Exclusions: Banks, public sector companies, and businesses currently undergoing insolvency proceedings are not eligible. Additionally, businesses that derive more than 50% of their revenue from rentals or other non-trading activities are ineligible.
Funding Limit: Eligible businesses can receive up to £2 million in funding solutions.
Location: Must be based in the UK.
Business Plan: You must have a suitable business plan.
Businesses that have previously received support through the Recovery Loan Scheme (RLS) or the Bounce Back Loan Scheme (BBLS) can still apply for the GGS, provided they meet the eligibility criteria.
