The Growth Guarantee Scheme is the successor to the Recovery Loan Scheme

Growth Guarantee Scheme

It is designed to support access to finance for UK smaller businesses as they look to invest and grow. The Growth Guarantee Scheme will launch with accredited lenders on 1 July 2024, with a wide range of products supported by different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.

The terms of the scheme are intended to remain broadly unchanged from the Recovery Loan Scheme, enabling continuity and consistency for lenders and the business community.

The Growth Guarantee Scheme can generally support facility sizes of up to £2m and provides the lender with a 70% government-backed guarantee.

The Growth Guarantee Scheme is expected to support around 11,000 businesses between 1 July 2024 and 31 March 2026. The borrower always remains 100% liable for the debt.

The British Business Bank will administer the Growth Guarantee Scheme on behalf of the Secretary of State for Business and Trade.

Succeeding the Recovery Loan Scheme

The first two iterations of the Recovery Loan Scheme, designed to support access to finance and growth for UK businesses as they recovered from the Covid-19 pandemic, enabled £4.3bn of finance to smaller UK businesses.

The third iteration of the scheme has offered more than £1bn of finance since its launch in August 2022. Approximately 80% of facilities under the third iteration of the scheme have been offered outside of London, and more than 90% of the businesses supported had fewer than 50 employees.

The Recovery Loan Scheme (RLS) will continue to be available until the end of June 2024.