The Growth Guarantee Scheme

Please note this is not an exhaustive list:

– 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: GGS Accredited Lenders 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.

The assistance provided through the 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. More information on subsidies is available here.

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
– Principle Business activity of primary extraction of coal, lignite, crude petroleum and natural gas, and certain support activities for petroleum and natural gas extraction.

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.

Decision-making on whether a business is eligible for the Growth Guarantee Scheme is fully delegated to Genesis Asset Finance by the British Business Bank.

– Up to £2m per business group: The maximum amount for 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 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.

– Wide range of products: The Growth Guarantee Scheme supports term loans, overdrafts, asset finance, invoice finance, and asset-based lending facilities. Not all lenders will be able to offer all products.

– Term length: Term loans and asset finance facilities are available from three months up to six years, with overdrafts, invoice finance and asset-based lending available from three months up to three years.

– 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 2022 are not prevented from accessing the Growth Guarantee Scheme, but borrowing under some of these schemes may reduce the maximum amount the borrower is eligible for.

– Pricing: Interest rates and fees charged by lenders will vary and will depend on the specific lending proposal. The Genesis Asset Finance 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 Genesis Asset Finance discretion, in line with our normal commercial lending practices. Taking security over Principal Private Residences is strictly prohibited within the Scheme though.

– Guarantee is to the Accredited Lender: The scheme provides Genesis Asset Finance 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 GGS Accredited Lender: Growth Guarantee Scheme-backed facilities are provided at the discretion of Genesis Asset Finance.

GGS Accredited Lenders are required to undertake standard credit and fraud checks for all applicants.

The assistance provided through the 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. More information on subsidies is available here.

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. British Business Bank plc and its subsidiaries are not banking institutions and do not operate as such.

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