A GUIDE TO THE GROWTH GUARANTEE SCHEME

As announced in the Spring Budget 2024, the Recovery Loan Scheme would end on 30 June 2024. It has been succeeded by the Growth Guarantee Scheme, which will run until March 2026 to help more businesses access the finance they need.  We answer the most common questions we hear from customers on the new Government backed loan scheme.

What is the Growth Guarantee Scheme?

The successor scheme to the Recovery Loan Scheme, The Growth Guarantee Scheme (GGS) launched in July 2024. The GGS is designed to support access to finance for UK small businesses as they look to invest and grow.

Money is loaned through accredited lenders, and the Government gives the lender a 70% guarantee on the loans. That means that if the business can’t repay the loan, the Government will reimburse the lender. Although the borrower remains liable for the full loan amount, the guarantee allows lenders to say yes to more businesses. 

How much can I borrow?

Businesses can borrow from £25,001 to £2 million per business group and the term available is between 1 and 6 years.

There are no fees for full early repayment and you’ll only pay interest on the time you borrow.  

What can I use a Growth Guarantee Scheme loan for?

A Government-backed GGS loan can be used for any legitimate business purpose, including managing cash flow, funding equipment, investment and growth.

What is the eligibility criteria?

Businesses must be UK-based, trading for at least two years, with a turnover of less than £45 million. They must not be in insolvency proceedings and should generate over half of their turnover from trading activities.

How can I apply?

To start your GGS loan application give the Activate team a call on 01908 112800. Your dedicated Account Manager will then oversee your application and keep you updated on its progress.