Growth Guarantee Scheme (GGS)

The Growth Guarantee Scheme (GGS) is a UK government initiative which launched on 1 July 2024, designed to enhance access to finance for small and medium-sized enterprises (SMEs) as they seek to invest and grow. This scheme is a successor to the Recovery Loan Scheme and aims to improve the borrowing terms available to businesses.

Key Features of the GGS:

• The GGS allows businesses to borrow up to £2 million per business group for those outside the Northern Ireland Protocol, and up to £1 million for those within it.
• The scheme provides lenders with a 70% government-backed guarantee against the outstanding balance of the loan after standard recovery processes have been completed. However, borrowers remain 100% liable for their debts.
• The GGS supports various forms of financing including term loans, overdrafts, asset finance, invoice finance, and asset-based lending. Minimum facility sizes start at £1,000 for certain types of finance and £25,001 for term loans and overdrafts.

To qualify, businesses must:

• Have a group turnover of up to £45 million.
• Be based in the UK and generate more than 50% of their income from trading activities.
• Not be classified as a business in difficulty or undergoing insolvency proceedings.

Businesses can apply through accredited lenders who will conduct standard credit and fraud checks. Previous borrowing under other government schemes may affect eligibility and loan amounts available under GGS.

The Growth Guarantee Scheme aims to provide vital support to SMEs across the UK, facilitating their growth by improving access to necessary funding while mitigating risks for lenders through government guarantees. It is seen as a subsidy and hence you will need to prove that you have not reached the maximum subsidy allowance.

Please email Michaela Johns or call 01280 461256 if you have any further questions on GGS.