guide / Growth Guarantee Scheme

How the Growth Guarantee Scheme works

Under the Growth Guarantee Scheme, an accredited lender assesses and, if approved, provides finance to a business. The government-backed scheme guarantees 70% of the lender’s eligible loss, subject to programme conditions. This is a lender-side risk-sharing arrangement: it does not reduce the borrower’s debt, remove repayment duties or assure that an application will be accepted.

Discuss your funding Read the key facts

Independent broker guidance Evidence linked below Reviewed 30 September 2026

At a glance

What you need to know before you apply.

Follow the application, lender assessment and guarantee mechanics from first enquiry through repayment.

The guarantee is 70% of eligible lender loss.

Borrowers remain liable for all repayments.

Applications and credit decisions are handled by accredited lenders.

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.

1. Find a participating lender

Start by checking the British Business Bank’s accredited lender directory and confirming that a lender offers the relevant type of finance under the scheme. The lender, not the business, applies the guarantee to an eligible facility in accordance with programme rules.

Availability differs between lenders and products.
A broker can help explain options but cannot decide for a lender.
Confirm the product is being considered under the scheme.

2. Submit an application

The lender asks for information about the business, ownership, finances, funding purpose and repayment plan. It reviews affordability, creditworthiness, security and its own commercial criteria. Scheme eligibility does not replace this assessment and does not establish a right to receive funds.

Give complete and accurate information.
Explain any existing group borrowing under the scheme.
Ask about fees, interest, security and conditions.

3. Understand liability and repayment

If a lender makes an offer, the business enters into a normal finance agreement and must follow its terms. The 70% guarantee is between the programme and lender; it is not insurance or debt forgiveness for the borrower. Security and personal guarantee decisions remain subject to lender discretion and scheme restrictions.

Borrower liability remains 100%.
Repayment schedules and pricing are set by the lender.
A principal private residence cannot be taken as security under the scheme.

Further clarity

Questions, answered.

The detail matters. These answers are general guidance, not a lending decision. A lender will assess your particular circumstances.

Who applies for the guarantee?

The accredited lender uses the scheme for eligible finance. Businesses apply to the lender for a facility rather than claiming the guarantee themselves.

Does the guarantee lower my interest rate?

Not necessarily. The lender sets the offered price and terms. The scheme does not promise a specific rate or that finance will be cheaper.

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.

Last reviewed: 30 September 2026

Sources checked: 30 September 2026

Next scheduled review: 30 October 2026

British Business BankGrowth Guarantee Scheme

British Business BankGrowth Guarantee Scheme frequently asked questions

British Business BankGrowth Guarantee Scheme accredited lenders

A useful conversation starts here

Let’s look at the whole picture.

We’ll listen to your funding requirement, explain the available routes and help you understand what a lender may ask for. No scheme eligibility or approval is promised.

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