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Growth Guarantee Scheme: what the changes mean for you

The Growth Guarantee Scheme is due to get a £54m turnover limit and 10-year terms on some loans, but it still runs on its current rules for now. What the scheme is, who the 70% guarantee protects and how to prepare an application.

The Growth Guarantee Scheme (GGS) helps smaller UK businesses borrow from accredited lenders, with the government guaranteeing 70% of the outstanding balance to the lender. Changes announced in July 2026 will raise the turnover limit from £45m to £54m and allow terms of up to 10 years on some loans, but at the time of writing the British Business Bank says the scheme is still running on its existing terms while lenders bring the changes in.

More capacity may be on the way. On 23 October 2026, Reuters, citing the Financial Times, reported that the 28 October Budget was expected to include £5 billion of extra capital for the British Business Bank, the government-owned bank that runs the scheme. Treat that as a signal, not a promise of cheaper or easier credit.

What is the Growth Guarantee Scheme?

The GGS launched on 1 July 2024 and replaced the Recovery Loan Scheme. You do not apply to the government. You apply to one of the accredited lenders on the British Business Bank's list, and that lender decides whether to lend, how much, and at what price.

The current rules published by the British Business Bank are:

  • Turnover: up to £45m, measured across the group if your business is part of one.
  • Facility size: generally up to £2m per business group (£1m for businesses in scope of the Northern Ireland Protocol, with lower caps in some sectors).
  • Minimum size: £25,001 for term loans and overdrafts; £1,000 for asset finance, invoice finance and asset-based lending.
  • Terms: three months to six years for term loans and asset finance; up to three years for overdrafts, invoice finance and asset-based lending.
  • Pricing: set by the lender.
  • Security: a lender can ask for a personal guarantee, but your main home (your principal private residence) cannot be taken as security under the scheme.

Who does the 70% guarantee protect?

The guarantee protects the lender, not you. In the British Business Bank's words, "the borrower always remains 100% liable for the debt." If the business cannot repay, the lender recovers what it can first and only then claims on the guarantee.

What changed in July 2026?

On 12 and 13 July 2026, HM Treasury and the British Business Bank announced:

  • the turnover limit rising from £45m to £54m
  • the maximum term rising from six to 10 years, which HM Treasury says applies to loans of up to £1.1m
  • a £6.5bn uplift that the British Business Bank expects to support further lending to around 33,000 businesses over four years

The British Business Bank's scheme page still shows the £45m limit and six-year terms, and says it is working with accredited lenders to put the new features into practice. Until your lender confirms otherwise, plan around the current rules.

What this means for your business

For most cafés, salons, shops and trades, the turnover change makes no difference. The longer term is what matters.

Spreading the same loan over 10 years instead of six lowers each monthly repayment, which can ease cash flow. The trade-off is that you pay interest for longer, so the total cost is usually higher. It can suit an investment that pays back over years, such as a fit-out, but not a short dip in takings.

The guarantee may make a lender more willing to lend where you have little to offer as security. It does not change the basics. The lender still has to be satisfied that the business is viable, can afford the repayments and is not in financial difficulty.

How we review an application before it goes to a lender

Before a business we work with approaches a lender, we go through the six questions a credit team will ask. It avoids a string of applications that each leave a mark on your credit file.

  1. What is the money for, and how does it pay for itself? A new oven that lets a bakery take wholesale orders is easier for a lender to follow than "general working capital".
  2. Can the business afford it in a quiet month? We read recent business bank statements and card takings month by month, not as an annual average, and check the repayment still fits after rent, leases, card machine costs and any revenue-based finance.
  3. What do you already owe? We list every facility, because a lender will see them on the credit file and an overlooked one damages trust.
  4. Does the business pass the scheme's trading tests? For most businesses, more than half of income must come from trading, and the business must not be in difficulty or in an insolvency process.
  5. Have you had other public support? GGS facilities count as a subsidy, and you confirm in writing that the new facility keeps you within your limit.
  6. Is a scheme-backed loan the right product at all? Sometimes it is. Sometimes asset finance, an overdraft, a standard unsecured loan or revenue-based finance is simpler or quicker. We compare first, then apply.

Practical steps

  • Check the British Business Bank's accredited lender list to see which lenders offer the product you need in your area.
  • Ask the lender whether the 10-year term and £54m limit are live on its GGS products yet.
  • Ask whether a personal guarantee will be needed and how much it would cover.
  • Compare the total cost over the full term, not just the monthly payment.
  • Be wary of anyone offering a "government-backed loan" without naming the accredited lender behind it. The British Business Bank warns that an intermediary should only offer a GGS-backed facility through an accredited lender.

Frequently asked questions

Is a Growth Guarantee Scheme loan a government loan?

No. It is a commercial loan, overdraft or finance facility from an accredited lender. The government guarantees part of the lender's potential loss, but your business owes the full amount.

Can a lender take my home as security?

Not under the scheme. Your principal private residence cannot be taken as security for a GGS-backed facility. A lender can still ask for a personal guarantee.

Can I get a 10-year GGS loan now?

Not everywhere yet. The British Business Bank says it is working with lenders to bring the change in, and HM Treasury says the 10-year term applies to loans of up to £1.1m. Ask your lender what it offers today.

Talk it through with us

If you are thinking about borrowing, we can go through your statements, help you work out what is affordable and compare options from the providers we work with, including business loans and revenue-based finance. We are not a lender and we are not a British Business Bank accredited lender; where a scheme-backed facility from an accredited lender looks like the better fit, we will tell you. If card fees are eating into the takings that would repay a loan, book a free card fee review first.

Call or WhatsApp 07777 175890.

Jos Finserv Ltd (company no. 14560046) is an independent broker. For business finance we are a credit broker, not a lender, and we may receive commission from providers. Approval and terms depend on your trading history. No obligation.

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