UK Government-backed business funding — 2026 guide

Growth Guarantee Scheme (GGS) 2026 — UK Government‑backed loans up to £2 million

The Growth Guarantee Scheme is the UK Government’s flagship business finance programme — the official successor to the Recovery Loan Scheme (RLS), run by the British Business Bank. Term loans, asset finance, invoice finance, overdrafts and asset‑based lending from £25,001 to £2 million with a 70% government‑backed guarantee to the lender.

Get my free GGS quote How GGS works
Up to £2,000,000 70% Government‑backed guarantee Terms 3 months to 6 years Available alongside RLS / CBILS / BBLS
£25k–£2m
GGS facility size range
70%
Government guarantee to lender
3m–6yrs
Typical repayment terms
≤£45m
Group turnover ceiling
What is the Growth Guarantee Scheme?

The UK Growth Guarantee Scheme — explained

The Growth Guarantee Scheme (GGS) is a UK Government‑backed lending programme designed to help smaller UK businesses access the finance they need to invest, expand and trade. Run by the British Business Bank on behalf of the Department for Business and Trade, GGS launched on 1 July 2024 as the direct successor to the Recovery Loan Scheme (RLS).

Under GGS, the Government provides accredited lenders with a 70% guarantee on each eligible loan they advance — encouraging them to lend to viable businesses that might otherwise struggle to access affordable finance. The borrower remains 100% liable for the debt; the guarantee protects the lender, not you.

In April 2025, the Chancellor announced an extra £500m of additional lending capacity for the scheme, supporting cashflow as global trading conditions and tariffs evolve. GGS supports a wide range of products including term loans, overdrafts, asset finance, invoice finance and asset‑based lending.

2026 update: the scheme remains the UK’s flagship Government‑backed SME funding route, sitting alongside the British Business Bank Start Up Loan and a range of live UK Government business grants for 2026. Most accredited GGS lenders have refreshed their pricing for 2026 — see our 2026 GGS rates page for a current benchmark.

Indicative GGS loan range

Most UK GGS facilities sit in this band:

£25,001£2,000,000

Asset finance, invoice finance and asset‑based lending start from £1,000. Northern Ireland Protocol borrowers are capped at £1m (lower for some primary production sectors).

How GGS works

From quote to drawdown in days, not months

As a credit broker, we connect you to British Business Bank‑accredited GGS lenders, take the leg‑work out of comparing offers, and walk every application through underwriting and drawdown. Five short stages:

Tell us about your business

Funding amount, time trading, group turnover, sector and reason for finance. Takes around 90 seconds.

GGS eligibility & affordability check

We confirm you meet the GGS criteria (UK trading, ≤£45m group turnover, viable proposition, no insolvency proceedings).

Match to accredited lenders

We approach matched lenders from the British Business Bank GGS panel and present indicative offers side by side.

Underwriting & signing

The lender completes its standard underwriting (accounts, bank statements, ID & AML). Documents are e‑signed; no branch visits.

Funds released

Capital lands in your business bank account, often within 5–15 working days of an accepted offer.

Key features of the scheme

Key features of the Growth Guarantee Scheme

The headline rules every UK SME should know before applying for a GGS facility — size, term, security, eligibility and how it sits alongside earlier government schemes.

Products supported

Five GGS products — one government‑backed scheme

GGS isn’t a single “loan”. Accredited lenders use the scheme to offer a wide range of facilities, each suited to different funding needs — from working capital top‑ups to buying machinery or unlocking cash from your unpaid invoices.

The five funding products supported by the UK Growth Guarantee Scheme: term loans, overdrafts, asset finance, invoice finance and asset-based lending
Product Typical term Min facility Max facility Best for
Term loan 3 months – 6 years £25,001 £2,000,000 Lump sum for growth, premises, refits, acquisitions, refinances
Overdraft 3 months – 3 years £25,001 £2,000,000 Flexible day‑to‑day cashflow buffer, only pay for what you use
Asset finance 3 months – 6 years £1,000 £2,000,000 Vehicles, plant, machinery, IT — the asset secures the funding
Invoice finance 3 months – 3 years £1,000 £2,000,000 Unlock cash trapped in unpaid B2B invoices, scales with turnover
Asset‑based lending 3 months – 3 years £1,000 £2,000,000 Larger facilities backed by stock, plant and receivables combined
GGS eligibility

Am I eligible for the Growth Guarantee Scheme?

The British Business Bank sets the core GGS rules; lenders apply their own commercial credit and affordability tests on top. The headline criteria your UK business needs to meet:

If you previously took out an RLS, CBILS, CLBILS or BBLS facility, you can still apply for the Growth Guarantee Scheme — provided you meet the GGS criteria and the lender considers the new request affordable.
Common uses

What can I use a Growth Guarantee Scheme loan for?

GGS funding can be used for almost any legitimate UK business purpose where the lender is satisfied with affordability and viability. Common use cases:

Working capital & cashflow
Stock & raw materials
Marketing & growth campaigns
Plant & machinery purchase
Vehicle & fleet finance
Premises fit‑out / refurbishment
Hiring & payroll bridge
Refinance / debt consolidation
Business acquisition / MBO
Import / export & tariffs
Technology & IT investment
Energy efficiency upgrades
Rates & costs

GGS interest rates & fees (UK 2026)

GGS does not set the interest rate. Each accredited lender prices its own facilities commercially, based on your size, sector, financials and the product. As a guide, the bulk of UK GGS term loans price between ~7% and 16% APR, with overdrafts typically priced higher and asset / invoice finance commonly cheaper for stronger borrowers.

Strong‑credit SME

~7%–9% APR. Profitable Ltd company, 3+ years trading, multi‑million turnover, clean credit. Often the cheapest GGS offers in the UK market.

Typical UK SME

~9%–13% APR. 1–3 years trading, healthy bank statements, modest credit. The bulk of Growth Guarantee Scheme loans in the UK price in this band.

Higher‑risk profile

~13%–16%+ APR. Newer businesses, sectors with elevated risk, or applicants with past credit issues. Faster decisions and shorter terms typically apply.

Beyond the headline rate, expect arrangement fees (typically 1–5% of the loan), potential early repayment fees, broker fees and any default charges. Lenders are required to assess whether they could offer you an equivalent or better facility without using GGS — we always show the total cost of credit, not just the headline rate.

GGS vs the alternatives

Growth Guarantee Scheme vs commercial alternatives

A side‑by‑side comparison of GGS, a standard unsecured business loan, and a merchant cash advance — the three options most UK SMEs weigh up.

  Growth Guarantee Scheme Unsecured business loan Merchant cash advance
Government‑backed Yes — 70% lender guarantee No No
Typical size £25k – £2m £5k – £500k £5k – £500k+
Term 3 months – 6 years 3 months – 5 years Repaid as % of card sales
Repayments Fixed monthly Fixed monthly Daily holdback — flexes with revenue
Speed 5–15 working days 24–48 hours typical 24–72 hours typical
Best for Larger growth investments & longer terms Speed and simplicity for SMEs Card‑heavy retail / hospitality
Free quote — no obligation

Get my UK Growth Guarantee Scheme quote

Complete the short form below and a UK‑based business funding specialist will be in touch within one working day with indicative offers from accredited GGS lenders.

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Your funding requirements

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About your business

A few quick details so we can pre‑match you to UK GGS‑accredited lenders most likely to fund.

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Contact details

Final step. A UK funding specialist will be in touch within one working day with indicative offers from GGS‑accredited lenders.

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