Growth Guarantee Scheme: what the government guarantee does and does not do

The Growth Guarantee Scheme is designed to help viable UK smaller businesses access debt finance through accredited lenders. The government guarantee protects part of the lender's exposure. It does not reduce the borrower's responsibility to repay the debt in full.

As of October 2026, the scheme remains open under its existing operational terms

The British Business Bank says the Growth Guarantee Scheme is open for applications and currently supports facilities generally up to £2 million per business group for borrowers outside the scope of the Northern Ireland Protocol. GOV.UK's June 2026 scheme page says the current turnover limit is £45 million and the business must generate more than 50 percent of turnover from trading activity.

The scheme has been extended until 31 March 2030. That gives the programme a longer horizon, but it does not mean every business automatically receives £2 million or the maximum term. Accredited lenders make the credit decision and can offer different products, amounts and pricing.

The 70 percent government guarantee protects the lender, not the borrower

The British Business Bank states that the government provides the lender with a 70 percent guarantee against the outstanding balance of a qualifying scheme facility. The borrower remains 100 percent liable for the debt. A director should therefore not read "government guaranteed" as meaning the government will repay 70 percent of the company's loan if trading goes badly.

Normal lender recovery processes can still apply after default. Where personal guarantees or security are part of the facility, their treatment depends on the product and lender terms. Read the finance agreement exactly as you would with ordinary commercial debt.

The scheme can support more than a standard term loan

Current GOV.UK and British Business Bank guidance lists term loans, overdrafts or revolving credit, asset finance, invoice finance and asset-based lending among the finance types supported by participating lenders. Not every lender offers every product.

Choose the finance type according to the cash need. Equipment can suit asset finance, recurring working-capital gaps can fit a revolving facility and debtor-backed growth may fit invoice finance. The scheme is not a reason to use a term loan for every problem simply because that is the best-known product.

The business still needs to be viable and able to afford the debt

GOV.UK says eligible businesses need to trade in the UK, fall within the applicable turnover limit, generate more than half of turnover from trading and not be a business in difficulty or in relevant insolvency proceedings. The lender will still assess viability and repayment capacity.

Prepare the same evidence required for a serious finance application: accounts, bank statements, cash-flow forecast, borrowing purpose and existing debt schedule. A government guarantee does not turn an unaffordable facility into a sustainable one. If the company cannot service the repayment in a reasonable downside case, the financing problem remains.

Applications go through accredited lenders, not directly to government

The British Business Bank maintains a live list of accredited GGS lenders and states that the scheme is available through those providers. The current list includes banks, specialist lenders, asset-finance providers and other finance firms. Not every lender covers every region or finance type.

Approach lenders whose product matches the business need. The British Business Bank also warns businesses to ensure any GGS-backed offer comes through an accredited lender. A broker or intermediary can assist, but the facility itself should be traceable to a current accredited provider.

July 2026 expansion measures have been announced, but lenders are still operationalising them

On 12 July 2026, the Chancellor announced an additional £6.5 billion of GGS-supported lending capacity over four years. The British Business Bank also announced planned changes including greater flexibility for terms up to ten years on some term-loan and asset-finance facilities and an increase in turnover eligibility from £45 million to £54 million.

The British Business Bank's current scheme page says it is working with accredited lenders to operationalise these enhancements over the coming weeks while the scheme remains fully operational under existing terms. A business close to the new £54 million threshold should therefore check the live lender rules rather than assume the announced threshold is already available everywhere.

When comparing lenders, record which version of the scheme terms the lender is actually applying on the application date. That is especially important during a transition period because one accredited lender can update eligibility or maximum term before another. Use the lender's current product page and offer documentation as the operative source for the individual facility.