The Growth Guarantee Scheme (GGS) is the UK government’s main way of helping smaller businesses borrow. It replaced the Recovery Loan Scheme in July 2024 and is run by the British Business Bank on behalf of the Department for Business and Trade.
The important thing to understand is that the government does not lend you the money. A normal lender does. What the government provides is a guarantee to the lender: if the business can’t repay, the lender can claim back 70% of what it loses. That reduces the lender’s risk, which can be the difference between a “no” and a “yes”, especially for younger businesses or those without much property to offer as security.
What you can use it for
GGS-backed finance has to be used for genuine business purposes, such as growth, investment or working capital. It can be provided as:
- term loans
- overdrafts and revolving credit
- asset finance (vehicles, machinery, equipment)
- invoice finance and asset-based lending
Who can apply
The headline criteria are:
- the business trades in the UK and makes more than half of its turnover from trading activity
- annual turnover is no more than £45 million (on a group basis)
- the lender believes the business is viable and can afford the borrowing
- the business is not “in difficulty” or in insolvency proceedings
Sole traders, partnerships, limited companies and LLPs can all use it. A few sectors are excluded or have lower limits, so the lender will check your activity.
In July 2026 the government announced that the turnover limit will rise to £54 million and that loans of up to £1.1 million will be able to run for up to 10 years. Lenders are introducing these changes over time, so ask whether a particular lender is applying the new limits yet.
How much, and for how long
You can have up to £2 million per business group across GGS facilities. Loan terms, rates and minimum amounts are set by each accredited lender, not by the government. The scheme sets the maximum length of each type of facility.
The small print people miss
You are still 100% liable. The guarantee protects the lender, not you. If the business can’t pay, the lender will still try to recover the full debt.
Personal guarantees may still be asked for. Lenders can take a personal guarantee at their discretion. What they can’t do is take your main home (your “principal private residence”) as security for a GGS facility.
Not every lender offers it. Only lenders accredited by the British Business Bank can lend under the scheme, and each has its own appetite and criteria.
The lender decides. Meeting the GGS criteria doesn’t mean you’ll be approved. The lender still runs its normal credit checks and affordability assessment.
How we help
Part of our job is knowing which accredited lenders are actively lending under the scheme, and which of them suit your size, sector and purpose. If a GGS facility isn’t the best fit, we’ll tell you, and show you the alternatives.
You can check the basics in 30 seconds with the GGS checker at the top of our home page.