How can the Growth Guarantee Scheme support my business?

Small businesses have had it hard for the past few years – the pandemic cost the sector £109 billion, then corporation tax rose from 19% to 25%, and more recently, the cost of living has taken its toll. All of this has meant an increased need for business funding: enter the Growth Guarantee Scheme.

What is the Growth Guarantee Scheme?

The Growth Guarantee Scheme is a government programme designed to support the growth of small to medium UK-based businesses. Replacing the Recovery Loan Scheme, it officially launched on 1 July 2024, and is expected to run until 31 March 2026. It provides lenders with a government guarantee that covers 70% of up to £2 million. 

Am I eligible for the Growth Guarantee Scheme?

Eligibility depends on several factors:

• Limit: The borrowed amount cannot surpass £2 million

• Minimum: The minimum amount borrowed to be eligible is £25,001

• British: The business must be registered in the UK and must carry out trading activities in the UK  

• Age: Applicants must be over the age of 18

• History: If you took out a RLS, BBLS, or other loan scheme, you may still be eligible for this scheme

• Turnover: Your turnover cannot exceed £45 million

• Insolvency: Businesses in the midst of insolvency proceedings are not eligible

• Purpose: The funds must be used for business purposes, such as managing cash flow, acquiring a business, and paying employees

• Lender: The lender still has the right to decide if they’d like to extend funds, which means on top of meeting these terms, you’ll also need to be eligible for the specific funding you’re applying for

How can the Growth Guarantee Scheme support my business?

While the funds are not directly provided to you and you still remain fully responsible for the debt, the government guarantee provides lenders with an incentive to extend finance, which can then be used to support business growth. This incentive can also result in lenders providing lower interest rates since they are taking less risk given the government will cover 70% of any possible finance loss they may suffer.

This mixture of increased available capital and reduced interest rates can support businesses in:

• Funding strategic growth initiatives

• Managing cash flow

• Hiring additional team members

• Making mortgages more affordable 

• Supporting technology innovation

• Purchasing or leasing equipment

Additionally, as this scheme has an impact across the UK, it may increase spending, which may also have a positive impact on your businesses.

How to apply for the Growth Guarantee Scheme

Start by deciding which funding solution you’d like to apply for. Some possible options include: 

• Invoice finance

• Asset finance

• Bridging loans

• Business loans

• Working capital finance  

Then, you’ll want to find a lender that suits your needs. We can help there – we’re a broker, which means we match eligible applicants to suitable lenders. Just fill in the form here to find out if you’re eligible to borrow between £25,001 and £2M under the Growth Guarantee Scheme. 

If you prefer to find a lender directly, make sure you’re eligible using the criteria we’ve outlined above, then find an accredited lender, gather your documents, and apply for the funding directly. If you’re approved, they will then arrange the guarantee on their end. 

Apply for the Growth Guarantee Scheme with Funding Options by Tide

We help match eligible borrowers to our network of over 120 lenders. We’ve helped facilitate £800M in funding to UK businesses and we have more than 17,000 customers. We’re partnered with many of the leading financial businesses, including Starling, NatWest, and Funding Circle. As the Daily Telegraph once put it, we’re the “matchmaking website for small businesses and lenders.” 

Just click the link below and fill in the form to find out if we can help.

Find out if you’re eligible for the Growth Guarantee Scheme.

Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.