Growth Guarantee Scheme: what business borrowers should know

What the scheme does

The Growth Guarantee Scheme is administered by the British Business Bank on behalf of the government. It supports access to finance through accredited lenders, which can use a government-backed guarantee when making eligible facilities. The borrowing remains a commercial agreement with the lender, rather than money lent directly by the government.

The scheme supports several forms of debt finance, so it is not a single standard product. A term loan, overdraft or asset-finance agreement has its own payment and contractual mechanics. Understanding the guarantee does not replace reading the proposed facility documents.

The lender's accreditation concerns its participation in the scheme. It does not mean every product it offers uses the guarantee or that every applicant will be accepted. Ask the lender which facility is being considered and how it is documented. Do not assume scheme participation from a general description of government-backed finance.

CostQuote is not a Growth Guarantee Scheme accredited lender and cannot arrange a scheme facility. It is not affiliated with, endorsed by or acting for the government or the British Business Bank. This article explains the published scheme; it does not assess an application or provide access to the guarantee through this introduction service.

The borrower remains liable for 100% of the debt

The scheme provides the lender with a 70% government-backed guarantee under its rules. That protection concerns the lender's qualifying loss after the relevant recovery process. The borrower remains liable for 100% of the debt and must meet the facility's repayment obligations in full.

The guarantee is not a reduction in the amount borrowed, a grant element or a payment the borrower can claim. If the business cannot pay, the lender can pursue recovery under the agreement and any applicable security or guarantee. The government guarantee does not tell the borrower to repay only the unguaranteed share.

Read this point together with the proposed repayment schedule and events of default. A business should assess whether it can meet the commitment using its own cash-flow information, including existing borrowing. An official scheme label does not remove the practical consequences of missed payments or an unsustainable commitment.

If a sales explanation suggests that the government will cover part of what you owe, ask the accredited lender to correct that explanation in writing. Keep the official borrower-liability statement with the facility documents so other directors or partners understand the same position.

The accredited lender makes the decision

Decision-making is delegated to the accredited lender. It applies its credit, fraud and anti-money-laundering checks and considers the proposal under the scheme's criteria and its own assessment. Neither the administrator's general eligibility page nor an introducer can confirm that a particular business will receive finance.

Prepare accurate business and ownership information, accounts, current financial records and an explanation of the intended use. A lender may request additional evidence specific to the facility. There is no universal approval timetable in this guide, and meeting a headline criterion does not establish that every other condition is satisfied.

For a group of businesses, explain the structure and existing facilities clearly. Published limits can apply at group level, and subsidy-control or other scheme restrictions can affect the amount available. Do not calculate eligibility using only the turnover or borrowing of one company where connected entities are relevant.

If the lender asks for clarification, answer the actual question and distinguish evidence from assumptions. A forecast can support a proposal, but it is not confirmed revenue. Keep different versions dated so the lender can understand changes in the request without receiving contradictory information.

Published terms and announced enhancements

As checked on 9 September 2026, the administrator says the scheme remains operational on its existing terms while July 2026 enhancements are implemented. The existing published framework generally supports facilities up to £2 million per business group, with a £45 million turnover cap. Lower limits can apply, including for borrowers within the Northern Ireland Protocol scope and particular sectors or subsidy positions.

The announced enhancements include a turnover cap of £54 million and terms up to ten years for term loans and asset finance. Do not treat those announcements as terms already available from every lender. Confirm implementation and the specific facility with the accredited lender using current official information.

These are scheme parameters, not a quote, approval limit or offer to the reader. Facility minimums, product availability and other conditions also apply. A maximum duration does not mean a lender must offer that duration, and the scheme end date is not the repayment date for every facility.

What the published eligibility criteria consider

The published criteria concern UK trading and operations, a viable borrowing proposal and the business's financial position. The administrator generally requires more than half of turnover to come from trading activity, with stated exceptions for certain organisations. Check the detailed criteria for the legal form and activity involved.

A lender must consider viability and the relevant business-in-difficulty rules. Those are not conclusions that can be drawn from a short website form. Provide the requested accounts, commitments and explanation of the proposal so the lender can perform its own assessment.

Excluded categories include banks and building societies, insurers and reinsurers, public-sector bodies and state-funded schools, with further restrictions for certain activities. Insurance brokers are treated differently from insurers under the published exclusions. The list and any sector-specific conditions should be read in the official scheme material rather than reduced to a broad claim that all small businesses qualify.

Use the criteria as a preparation checklist, not a self-certification of approval. If an aspect of the business sits near an exclusion or uses an unusual group structure, raise it directly with the accredited lender. Do not omit the activity to fit a simplified description.

Access to finance, guarantees and security

The administrator says a lender should use the guarantee only where it could not offer a facility on equivalent or better terms without it. The scheme is intended to support access to finance. It should not be described as inherently cheaper, better value or easier to get than other borrowing.

The lender must consider the scheme rules and the economic benefit of the guarantee in its terms, but that does not establish the outcome for an individual borrower. Read the actual facility and compare its obligations with the business's needs. There is no universal price or rate stated here.

Accredited lenders may request personal guarantees where that is their usual practice. A borrower's or guarantor's principal private residence cannot be taken as security or in support of a guarantee under the scheme. That restriction does not remove personal liability created by an otherwise valid guarantee or guarantee immunity from every legal enforcement consequence.

Review the personal guarantee guide and get independent legal advice before signing a personal undertaking. Ask which obligations, cap, costs and release conditions apply. Do not assume the government-backed element makes the guarantee a formality.

Where to find accredited lenders

Use the British Business Bank's current accredited lender list. This is the appropriate place to identify participants and the products they provide. Accreditation can be product-specific, so read the details rather than treating inclusion as confirmation of every finance type.

Confirm the lender's identity through its official contact route and check that the proposed facility is actually within its scheme offering. The presence of a government reference in an unsolicited message is not evidence of accreditation. Do not send sensitive business records to an unverified contact.

Keep the date of the official information with your enquiry notes. During implementation, a discussion held earlier can refer to different parameters from a later offer. Ask the accredited lender to state which operational terms apply to the proposed facility and retain that answer with the final agreement.

What to do next

Before approaching an accredited lender:

• Check the current official terms and implementation notices.
• Identify the correct legal business and group structure.
• Gather accounts, current trading information and existing commitments.
• Explain the use of funds and distinguish forecasts from confirmed work.
• Read the full-repayment obligation and any security requirements.
• Get independent advice on any personal guarantee.

The related scheme information page provides further context on the introduction service's limited role. For a scheme facility, the accredited lender is the decision-maker and application route. The introduction service cannot confirm scheme eligibility or arrange the facility, and an enquiry must not be treated as an application to the government or administrator.