The Growth Guarantee Scheme is a government-backed programme delivered through accredited lenders to support viable smaller businesses seeking finance. Facilities can include loans, overdrafts, asset, invoice and asset-backed finance. Lenders decide eligibility and affordability. The 70% guarantee covers lender losses after normal recovery, not the borrower, who remains fully liable. Sorbus can help you understand the terms and compare other commercial finance options.
Independent broker guidance Evidence linked below Reviewed 30 September 2026
At a glance
What you need to know before you apply.
Sometimes searched as the Government Growth Scheme, this is officially the Growth Guarantee Scheme. Understand eligible finance, headline limits, borrower liability and how to approach an accredited lender.
01
Group turnover generally must not exceed £45 million.
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Usually up to £2 million of total scheme-backed borrowing per group; the Northern Ireland Protocol cap is £1 million per group or lower in certain sectors.
03
Minimum facilities: £25,001 for term loans and overdrafts; £1,000 for asset, invoice and asset-backed finance.
04
The lender receives a 70% guarantee after normal recovery; the borrower remains 100% liable.
Important distinction. The Growth Guarantee Scheme guarantee is provided to the lender, not the business. The borrower remains fully liable for the debt. A personal guarantee may be requested at the lender’s discretion; scheme backing does not guarantee approval.
What the scheme does
The scheme gives accredited lenders a government-backed guarantee for 70% of eligible losses remaining after normal recovery. It is a lender-side guarantee, not borrower protection: it does not reduce the business’s debt or repayment obligations. The lender makes its own credit decision and sets facility terms.
It is not a grant or a payment to a business.
The borrower must repay 100% of borrowing, interest and applicable charges.
The guarantee does not assure approval or a particular rate.
Finance and headline limits
Facilities may include term loans, overdrafts, asset finance, invoice finance and asset-backed lending. The usual maximum is £2 million per group in total; the Northern Ireland Protocol cap is £1 million per group or lower in certain sectors. Minimum facility amounts are £25,001 for term loans and overdrafts, and £1,000 for asset, invoice and asset-backed finance. Group turnover is generally capped at £45 million.
Term loans and asset finance: three months to six years.
Overdrafts, invoice finance and asset-backed lending: three months to three years.
Some refinancing may be possible under scheme rules.
How to proceed
Businesses apply to an accredited lender, not to the British Business Bank for a guaranteed loan. A lender assesses the business, purpose, affordability, security and its own product criteria. Ask the lender to explain whether the facility is being offered under the Growth Guarantee Scheme and review all terms before signing.
Check the current accredited lender list.
Prepare financial information and a clear use-of-funds plan.
Compare the complete cost, security and repayment obligations.
Further clarity
Questions, answered.
The detail matters. These answers are general guidance, not a lending decision. A lender will assess your particular circumstances.
What is the Growth Guarantee Scheme?
It is a UK government-backed guarantee programme delivered through accredited lenders to support eligible businesses seeking finance. The guarantee covers part of eligible lender losses; it is not a grant or borrower debt write-off.
Who is eligible for the Growth Guarantee Scheme?
Eligible businesses must meet scheme rules, including a general group turnover ceiling of £45 million, and pass an accredited lender’s assessment. Sector and Northern Ireland limits can apply; eligibility does not guarantee approval.
How much can I borrow?
The usual maximum is £2 million of total scheme-backed borrowing per group. Some Northern Ireland cases and sectors have lower limits, and the lender may offer less.
Which lenders participate?
The British Business Bank publishes the current accredited lender directory. Product availability and lending criteria vary, so check the official list and confirm details directly with a lender.
Is the Growth Guarantee Scheme currently active?
Yes. The Growth Guarantee Scheme is available through accredited lenders. Product availability varies, and each application remains subject to scheme eligibility and the lender’s credit assessment; check the British Business Bank’s current directory and confirm availability directly with a lender.
Is the Growth Guarantee Scheme a government loan?
No. An accredited lender provides the finance. The government-backed programme guarantees part of eligible lender losses; it is not a loan made directly by government.
Does the Government guarantee the loan?
The lender receives a 70% guarantee of eligible losses remaining after normal recovery, subject to programme rules. It is not borrower protection, a guarantee of approval or a promise that the borrower’s debt will be repaid for them; the borrower remains liable for 100% of the debt.
Do I have to repay the loan?
Yes. The borrower remains liable for 100% of the borrowing and must meet the agreement’s repayments, interest and charges.
Can a start-up or new business apply?
A newer business may ask an accredited lender about an application, but the lender sets evidence and credit requirements. Limited trading history does not guarantee approval or an exception.
Can an established business apply?
An established business may apply if it meets scheme criteria and a lender’s requirements. Trading history alone does not ensure eligibility or approval.
Can I use the funding for stock?
The scheme can support finance for legitimate business purposes, including stock or inventory, subject to scheme restrictions. Explain the intended purchase and amount when applying. The lender still decides whether to offer a suitable product and approves or declines the application under its credit assessment.
Can I use the funding for equipment?
Equipment or machinery can be discussed as a legitimate business purpose, subject to scheme restrictions. Asset finance is one product type covered by the scheme, but the lender decides which products it offers, whether the proposed facility fits and whether the application meets its credit criteria.
Can I use it for working capital?
Working capital is among the legitimate business purposes that may be funded, subject to scheme restrictions; it is not permitted only in exceptional cases. The lender assesses the application and decides whether to offer a suitable finance product, but its product or credit decision does not alter the scheme’s rules on permitted purposes.
Can I refinance existing borrowing?
Some refinancing may be possible under scheme rules, but it is not automatic. Explain the existing facility and purpose to the lender for an eligibility decision.
Does poor credit prevent an application?
Only a lender can assess the effect of credit history on your case. The guarantee does not override underwriting; provide accurate information and explain relevant circumstances.
What documents are required?
The lender decides what it needs. Be prepared to provide business and group financial information, forecasts, ownership details, existing borrowing and the proposed use of funds.
How long does an application take?
There is no single guaranteed decision time. Timescales depend on the lender, application complexity and whether it receives all requested information.
Can I apply through a finance broker?
You may use a broker to help explore or present funding options. The accredited lender still assesses the application and makes the lending decision.
What if my application is rejected?
Ask the lender what reasons it can share and whether it can identify evidence gaps or a suitable alternative. Another application is assessed separately and is not guaranteed.
Can I apply after being declined elsewhere?
You can ask another accredited lender to consider your case, but each lender applies its own criteria and no approval is assured. Address any material issues before making another application.
Does the lender still carry out a credit assessment?
Yes. The accredited lender conducts its own credit, affordability and eligibility assessment. The guarantee does not replace underwriting.
Is security required?
A lender may require security, subject to scheme rules and its own assessment. A principal private residence cannot be taken as security under the scheme.
Does the guarantee mean no personal guarantee is required?
No. A lender may request a personal guarantee at its discretion, subject to scheme rules. Ask it to explain any guarantee before accepting an offer.
Evidence & review
Sources & official information
Scheme terms can change. We link to the material behind this guide so you can check the latest position directly.
Tell us about your business and what you need. This is not an eligibility assessment or a finance offer: only an accredited lender can decide whether a Growth Guarantee Scheme facility is available.