The Growth Guarantee Scheme (GGS) – what it is and how it works

The Growth Guarantee Scheme (GGS) is a government initiative designed to improve access to finance for UK businesses wishing to invest and grow.

It supports borrowing for business purposes, including working capital and growth.

In practice, many firms use GGS alongside other funding products - like invoice finance - to unlock cash from invoices while adding headroom for bigger, strategic plans.

What is the Growth Guarantee Scheme?

GGS is the successor to the Recovery Loan Scheme and launched with accredited lenders on 1 July 2024. It’s administered by the British Business Bank on behalf of the Secretary of State for Business and Trade. The scheme can support a range of products (availability varies by lender), including term loans, overdrafts, asset finance, invoice finance and asset-based lending so that firms can match funding to their needs.

How does the Growth Guarantee Scheme work?

Businesses apply through their lender, either with an existing provider or when arranging a facility for the first time. For example, an engineering firm seeking or using funding for growth would make its GGS application via its lender as part of that process.

The lender carries out its standard credit and fraud checks and will only lend where the proposition is viable and affordable and where the scheme would improve the terms or amount on offer to the borrower.

The borrower stays 100% liable for the full debt but the scheme provides lenders with a 70% government-backed guarantee against the outstanding balance, giving banks or approved lenders additional security.

Funding can be used for any legitimate business purpose, including managing cash flow or investment, provided the company can afford the additional borrowing.

Examples of how other businesses are using GGS:

• Recruitment firm unlocks expansion through the Growth Guarantee Scheme
• How a toy business transformed cash flow into expansion

Who is eligible for the GGS scheme?

To qualify, businesses typically need to be UK-based and trading in the UK. Most applicants must demonstrate that more than 50% of their income is generated from trading activity.

The scheme is open to smaller firms with turnover up to £45m (on a group basis, such as a collective group of firms or where there is a ‘parent’ company), and the lender must assess the borrowing proposal as viable.

Certain sectors and organisations (e.g., banks and state-funded schools) are excluded.

What are some key features of the scheme?

Wide selection of products

GGS can support multiple borrowing options, term loans, overdrafts, asset finance, invoice finance and asset‑based lending. That flexibility helps companies choose the right structure, such as invoice finance for day‑to‑day working capital.

Up to £2m facility available

Facilities can generally go up to £2m per business group (with a lower cap for Northern Ireland Protocol borrowers).

Minimums vary from £1,000 for invoice/asset-based facilities and typically £25,001 for term loans/overdrafts.

Access to multiple schemes

If you previously used CBILS, CLBILS, BBLS or the Recovery Loan Scheme before 30 June 2024, you can still apply for GGS.

Guarantee is to the lender

The government guarantee protects the lender, not the borrower, and is only called after the normal recovery process, recouping any money owed through the company's assets. You remain 100% liable for repayment.

What is the maximum term extension available under the Growth Guarantee Scheme?

Maximum duration depends on the product. For invoice finance they are generally available from three months up to three years.

When using GGS for growth plans you can align the facility term with the project timeline, and ensure repayments remain affordable.

How can I take out GGS?

Step 1: Define your growth plan

Start by clearly setting out what the funding will be used for and how it will support business growth, including how repayments will be met.

Step 2: Get key information ready

Lenders will typically ask for recent accounts, cash flow forecasts, and details of any subsidies already received. Having these ready can help the credit process move more smoothly.

Step 3: Speak to your lender

Applications are made through your lender.

• If you’re an existing Close Brothers Invoice Finance customer, speak to your account manager.
• If you’re new to Close Brothers, you can discuss a Growth Guarantee Scheme–backed facility alongside invoice finance as part of your application.