The Growth Guarantee Scheme

Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group);

UK-based: The borrower must be carrying out trading activity in the UK and, for most businesses, generating more than 50% of its income from trading activity;

Viability test: We must consider that the borrower has a viable business proposition;

Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings;

Subsidy limits: Borrowers will need to provide written confirmation that receipt of the Growth Guarantee Scheme facility
will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received.

Please note, the following are not eligible under Growth Guarantee Scheme:
– Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
– Public sector bodies
– State-funded primary and secondary schools.

We will review applications against our underwriting criteria, including reviewing financial information you provide, to check we consider you to have a viable business proposition and we will carry out credit and fraud checks. The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings.

Up to £2m business group:

The maximum amount of a facility provided under the scheme is generally £2m per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1m (or such other sum as notified from time to time by the BBB to us in accordance with the relevant legal agreement(s)) per business group for Northern Ireland Protocol borrowers. Minimum facility sizes vary, starting at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts.

Access to multiple schemes:
Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2024 are not prevented from accessing Growth Guarantee Scheme, but borrowing under these schemes may reduce the maximum amount the borrower is eligible for.

Pricing:
Interest rates and fees charged by the lender will vary and will depend on the specific lending proposal. Lender pricing will take into account the benefit of the Government guarantee and a fee that is charged to the lender for the guarantee.

Personal Guarantees:
Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.

Guarantee is to the lender:
The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.

Decision-making delegated to the lender:
Growth Guarantee Scheme-backed facilities are provided at our discretion and we are required to undertake our standard credit and fraud checks for all applicants.

The assistance provided through Growth Guarantee Scheme, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow.

Business Guidance

The British Business Bank’s Business Guidance pages have a range of guidance and resources for businesses, including information on how to manage your cashflow and where to find independent advice.

Legal Notice

The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing
of, the Secretary of State for Business & Trade. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

Visit www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme