Growth Guarantee Scheme
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Growth guarantee scheme
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Growth Guarantee Scheme
With 5.51 million small businesses in the UK, and SMEs accounting for over 99% of all enterprises, it’s no surprise that the government is eager to support them and foster their substantial impact on the British economy.
A notable initiative aimed at this goal is the Growth Guarantee Scheme, launched on July 1, 2024. Here’s what the scheme entails, how to check your eligibility, and the steps to apply.
Unlock Business Growth with Funding
The Growth Guarantee Scheme helps businesses access government-backed loans with favorable terms. Designed to support small and medium-sized enterprises, it provides flexible financing options to foster growth and expansion.
What is the Growth Guarantee Scheme?
The government backed Growth Guarantee Scheme replaces the Recovery Loan Scheme (which in turn replaced the Bounce Back Loan Scheme) with the same loan terms as the Recovery Loan Scheme. The Growth Guarantee Scheme will run from its 1 July launch until 31 March 2026 and is estimated to help 11,000 businesses borrow up to £2M.
This rebrand from the Recovery Loan Scheme to the Growth Guarantee Scheme demonstrates a commitment from the government to support the growth of British SMEs, given in the first instance the focus was on recovery and here the branding is centred around growth.
The government guarantee covers 70% of the loan amount, providing more security for lenders and a stronger incentive to extend credit to eligible businesses. The original iteration of this scheme started as a response to the difficulties many businesses faced as a result of Covid 19.
This scheme can be used to support pivotal business expenses, including equipment purchases, marketing campaign funding, and payroll. The scheme is launched in the hopes that businesses will have easier access to essential funding and vital support to facilitate growth thereby boosting the economy. There is also the hope that this scheme will enable reduced interest rates given the guarantee helps limit some of the exposure for lenders.
Our Benefits
Discover the Key Advantages of
Choosing Us
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Increased Access to Funding
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Flexible Loan Options
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Boosts Business Growth
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Encourages Innovation
