FundingAtlas
Loan guarantee
Loan guaranteeGrowthBritish Business Bank

Growth Guarantee Scheme

Successor to the Recovery Loan Scheme. A government-backed guarantee enabling accredited lenders to offer term loans, asset finance, invoice finance, overdrafts and revolving credit to UK smaller businesses.

Apply at official source
Advisor reviewed· Last reviewed

Read end-to-end by a FundingAtlas editor against the official source.

Editorial standardsMethodologyReview processReport an update

Quick answer

The Growth Guarantee Scheme helps smaller UK businesses access debt finance when they would otherwise struggle. The British Business Bank provides accredited lenders with a 70% government guarantee on each facility, supporting term loans, asset finance, invoice finance and revolving credit. Businesses apply directly to participating lenders, not to the Bank, and standard lender credit checks apply.

Funding amount

Varies

Region

United Kingdom

Stage

Growth

Provider

British Business Bank

Advisor view

This is debt, not a grant — repayment terms matter as much as headline access. Build a realistic cash flow that survives a 12-month sales slip.

Frequently asked questions

What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme is the successor to the Recovery Loan Scheme. It enables accredited lenders to offer term loans, asset finance, invoice finance, overdrafts and revolving credit to UK smaller businesses, backed by a 70% British Business Bank guarantee to the lender.
Who is eligible?
UK-based smaller businesses with turnover under £45m, trading commercially and viable in the lender's assessment.
Does the guarantee protect the borrower?
No. The guarantee protects the lender, not the borrower. You remain 100% liable for the debt.
What facility types are available?
Term loans, asset finance, invoice finance, overdrafts and revolving credit through accredited lenders. The right shape depends on the underlying capital need.
How do I find accredited lenders?
The British Business Bank publishes the current list of accredited lenders. Each lender runs its own credit process within the scheme rules.
What do lenders look for?
A defensible 24-month cash-flow forecast, clear use of funds, clean management accounts and a credible answer to downside scenarios.
Why do applications fail?
Weak forecasts, unclear use of funds, gaps in trading history, or borrowing into a model that has not been stress-tested.
Is this debt or a grant?
It is debt. Government-backed lending is still lending — repayment terms matter as much as headline access. Take advice on personal guarantees and security before signing.
How does it fit with equity and grants?
Often used alongside equity, grants and supplier credit. The right blend depends on dilution tolerance and growth horizon.
Where is the official scheme published?
The British Business Bank publishes scheme details and the accredited lender list at british-business-bank.co.uk.

Usually too early when

Advisor signal

You have no trading history, no realistic cash flow forecast, no clear use of funds, or you would struggle to service the loan if revenue softened.

Eligibility

UK-based smaller businesses (turnover under £45m) trading commercially and viable in the lender's assessment. Borrower remains 100% liable for the debt.

Common reasons applications fail

Weak forecasts, unclear use of funds, gaps in trading history, or borrowing into a model that has not been stress-tested.

What improves your odds

A defensible 24-month cash flow, clear use of funds, clean management accounts, and a credible answer to growth-slips scenarios.

Typical successful applicant

A UK SME with a clear growth plan, demonstrable repayment capacity, and a finance function able to present management accounts on demand.

Common misconceptions

Government-backed lending is still lending. The guarantee protects the lender, not the borrower; you are personally accountable for repayment.

What comes next

Set up disciplined monthly management accounts, hold a cash buffer, and review the facility annually against original use-of-funds.

Funding context

Often used alongside equity, grants and supplier credit. The right blend depends on dilution tolerance and growth horizon.

Related routes

Industries