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What Types of Projects Are Eligible for the Growth Guarantee Scheme via BLG?

Project being planned on a whiteboard

When embarking on a property development project, securing the right financing can be a make-or-break factor. At BLG Development Finance, we’re committed to supporting UK SME property developers through every step of their journey. That’s why we’re proud to offer financing under the Growth Guarantee Scheme (GGS), a British Business Bank and government-backed initiative designed to help businesses invest and grow. If you’re considering applying for the GGS, you may be wondering whether your project is eligible. In this blog, we’ll break down the types of projects that qualify for financing under the Growth Guarantee Scheme via BLG.

 

What Types of Projects Qualify for the Growth Guarantee Scheme?

The Growth Guarantee Scheme loans that BLG offer is designed to support a wide range of property development projects. Here are the key criteria that your project must meet to be considered eligible:

 

1. Residential and Commercial Developments

BLG Development Finance specialises in providing loans for both residential and commercial property developments. Whether you’re working on a new housing development, a mixed-use project, or a commercial property, these types of developments typically qualify under the GGS. The scheme is particularly beneficial for developers looking to take on projects that might have previously been out of reach due to funding limitations.

 

2. UK-Based Projects

To be eligible, your project must be based in the UK. The GGS is designed to support UK businesses, so it’s essential that your development is located within the country. Moreover, your business must generate more than 50% of its income from trading activity within the UK.

 

3. Projects Undertaken by Viable Businesses

The Growth Guarantee Scheme is aimed at supporting viable businesses that have a strong potential for success. As part of the application process, BLG will assess your business’s viability, ensuring that you have a sound business plan and the capability to complete the project successfully. This includes not being involved in relevant insolvency proceedings.

 

4. Projects Within Subsidy Limits

Because the GGS is a government-backed scheme, there are limits on the amount of subsidy your business can receive. If your project has benefited from other publicly funded programs, this may impact the total amount you’re eligible to borrow under the GGS. It’s important to provide written confirmation that the GGS facility won’t cause your business to exceed these subsidy limits.

 

5. Adherence to Sector Exclusions

Certain sectors are excluded from the Growth Guarantee Scheme. For example, banks, insurers, public sector bodies and state-funded schools are not eligible. However, property developers – especially those working on residential and commercial projects – are well within the scope of the scheme.

 

What Isn’t Eligible for the Growth Guarantee Scheme?

While the Growth Guarantee Scheme offers broad support for property development projects, it’s important to note what isn’t eligible. BLG does not offer cashflow loans under the GGS. The Growth Guarantee Scheme via BLG is strictly for development finance, meaning the funds must be used for specific property development activities.

Additionally, as stated above, certain businesses classified under specific sectors such as banks, insurers and public sector bodies, are not eligible for GGS-backed facilities.

 

How to Apply for the Growth Guarantee Scheme

If your project aligns with the criteria mentioned above, the next step is to apply for financing under the Growth Guarantee Scheme. At BLG, we pride ourselves on our streamlined application process, which involved guiding you through every step, from initial inquiry to final approval.

To get started, you’ll need to provide certain documents that meet our Lending Criteria. Our team will also conduct standard credit and fraud checks to ensure the legitimacy and viability of your project.

 

Get in Touch with BLG Development Finance

At BLG, we’re committed to helping UK SME property developers access the funding they need to bring their projects to life. If you’re interested in learning more about how the Growth Guarantee Scheme can support your property development, contact us today. Our team is ready to discuss your specific needs and help you secure the financing that’s right for you.

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"A challenging site like no other with every inch of the plot being built on and 12 apartments built-out through a driveway 2.5m wide off of a main high street with limited access rights, not to mention all the complexities associated with 13 Party Wall Agreements. Most lenders would not have had the vision for the scheme or the confidence in Spiller Builders to build out the scheme.  I just wanted to say how helpful the entire BLG team have been during the build. A very approachable and knowledgeable team, with a “can do” approach to lending. We will be looking to do more business with you for sure."

“We have used BLG for development finance for over 8 years. During that time we have found their knowledge and expertise in the property development industry to be second to none. Their loan process, pragmatic and flexible approach to lending and flexibility when required has supported our business needs throughout the period and provided us with support to deliver new homes in Bristol and the surrounding areas.”

“As property developers you never know the curve balls that you may get and a project that is great on paper may prove a bit more tricky.  This happened to us on a project that BLG have funded and throughout they have supported us.  Our business likes to be collaborative and when we hit those tough moments it really felt like we were working as a team with BLG.  If you have a decent project you can get it funded, but what you really need is a business that is there to support and advise you as well.  For us on this project it was BLG.”

“I approached BLG Development finance with an opportunity I had in Chesham, Buckinghamshire, to build 5 new build houses in 2021. My main contact was Anil Bains who is a Director covering Asset Management. Within very quick timescales, BLG provided me with indicative quotes in regards the finance levels they could offer me. Having considered those levels, I requested a valuation to be carried out which again was dealt with swiftly. We proceeded to completion. The build went very smoothly with monthly monitoring being carried out by BLG and monthly drawdown requests dealt with in a very timely manner. Due to a difficult time generally in the market in regards selling, I was in need of a six-month extension to the loan which again was appraised very quickly and granted. Having dealt with numerous funders over the last 20 years, I can only speak highly of my personal experience with BLG and would very confidently work with them again on any future projects. “

"From our side it has also been a pleasure working with BLG and the team there. We have found you easy to deal with, proactive in resolving any minor issues that have arisen through the project and shown great flexibility in working with us as a partner. We will certainly like to work with you on future partners."

“I really appreciate your hard work. We really like the way you communicate & I must say I haven't seen many people who are that approachable.”

“A very efficient processing team, dealing with the DD once deal credit approved, through to completion”

“Many thanks for your efforts on this one and getting it approved and sorted so swiftly, very much appreciated. I am sure I will be speaking to your over the coming months.”

“We had other funding options, but chose to use BLG again, as we work well with the team, who always provide very clear information and advice with a friendly approach throughout the funding process. Very efficient and always very helpful.”

“Many thanks Anil, it’s been a real pleasure working with BLG so far.  We’re lining up the next project too”

“We would recommend all staff we have dealt with at BLG, as we are very satisfied with the team and the initial offer/terms presented, then you and the funding team, through to the draw down team at valuation stage.”

“All documents are clear and the way you keep clients informed, all the way along the funding process, is refreshing for us”

“With regard to what should be improved at BLG, we work with many lenders in our business and we do not get the help and response we have had on the two projects with all at BLG on our funding for our developments.”

“We would particularly mention Dave Edwards and Tom Pitts as being central to having a smooth working relationship and being positive and helpful at all times. Their guidance in helping us navigate the project from inception to completion was invaluable. As was their patience, particularly at the beginning. We look forward to many future projects with the BLG team.”

“We would like to express our appreciation for your support on our development in Bristol. We were very pleased that, from the outset, you shared our vision of the project to convert a dated but classical building, that had outlived its usefulness as a school, into unique luxury apartments with views overlooking the city. We found our dealings practical and streamlined. Monthly payments were processed in an efficient and timely manner.”

“BLG are very good at communicating with clients and all documents are very clear and all at BLG are always happy to help.”

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