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Growth
Guarantee
Scheme
(GGS)

About Growth Guarantee Scheme

The successor scheme to the Recovery Loan Scheme, The Growth Guarantee Scheme (GGS) launched in July 2024 and is designed to support access to finance for UK small businesses as they look to invest and grow.

The Growth Guarantee Scheme aims to improve the terms on offer to borrowers. If BLG can offer a commercial loan on better terms, we will do so.

Growth Guarantee Scheme-backed facilities are provided at the discretion of BLG. We are required to undertake our standard credit and fraud checks for all applicants.

 

Proud to be supporting British businesses

BLG specialises in providing property development finance to UK SME property developers. We are delighted to receive accreditation from the British Business Bank as a lender under the Growth Guarantee Scheme (GGS).

We are proud to be supporting British businesses navigate through these uncertain times by providing property-secured loans through this government-backed scheme.

We will be offering development finance through the GGS scheme with flexible loan structures to support individual requirements.

To discuss your Growth Guarantee Scheme (GGS) requirements, contact us today to find out more.

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Scheme Features

    • Up to £2m guaranteed business group: The maximum amount of a facility provided under the scheme is £2 million per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1 million per business group for Northern Ireland Protocol borrowers.
    • Term length: BLG typically offer term loans from 12 months up to 2 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 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 BLG will vary and will depend on the specific lending proposal. BLG pricing will take into account the benefit of the Government guarantee.
    • Personal Guarantees: Personal guarantees can be taken at the BLG discretion, in line with our normal commercial lending
      practices. Principal Private Residences cannot be taken as security within the Scheme.
    • Guarantee is to BLG: 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 BLG: Growth Guarantee Scheme-backed facilities are provided at the discretion of BLG. BLG 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. Find out more about GGS subsidies.

Eligibility Criteria

  • 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: BLG 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.

You will need to provide certain documents when you apply for a Growth Guarantee-backed facility. Please refer to our Lending Criteria for general requirements.

For more information on our Growth Guarantee Scheme support for development finance, please contact us to discuss.

BLG’s GGS funding is dedicated to supporting UK SME property developers in development finance. We do not offer cashflow loans under GGS.

Business Finance Support

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. 

See further guidance and resources

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/debtfinance/growth-guarantee-scheme 

What Types Of Projects Are Eligible For The Growth Guarantee Scheme Via BLG?

Via BLG, the Growth Guarantee Scheme allows for UK SME property developers looking to finance development projects. BLG does not offer cashflow loans under the scheme, focusing instead on property-secured loans for developments, including residential, commercial, and mixed-use projects.

How Much Funding Can I Receive Through The Growth Guarantee Scheme?

The maximum funding available under the GGS is up to £2 million per business group for borrowers outside the Northern Ireland Protocol. For borrowers within the Northern Ireland Protocol, the maximum is £1 million. The exact amount will depend on the specific needs of the development project and the borrower’s eligibility.  Additional development finance loan amounts, albeit non guaranteed are available through BLG.

How Do I Apply For The Growth Guarantee Scheme?

To apply for the GGS through BLG, you’ll need to provide details about your development project, financial information, and other relevant documents. Contact BLG directly to discuss your requirements, and our team will guide you through the application process, including the necessary documentation and assessment steps.

Can The GGS Be Used Alongside Other Financing Options?

Yes, businesses that have previously accessed the CBILS, CLBILS, BBLS, or RLS schemes before June 30, 2024, can still apply for the GGS. However, previous borrowing under these schemes may reduce the maximum amount eligible under the GGS.

How Does The Growth Guarantee Scheme Affect My Equity In The Project?

The Growth Guarantee Scheme is a loan facility, so it does not directly affect your equity in the project. However, the loan terms and any personal guarantees required may have implications for your overall financial position. BLG can provide ongoing guidance on how the GGS fits within your broader financing strategy.

What Happens If My Project Experiences Delays Or Cost Overruns?

In the event that your project faces delays or cost overruns, BLG will work with you to assess the situation and explore possible adjustments within the framework of the scheme. It’s important to communicate any challenges early to find a solution that aligns with your loan terms.

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    Need to know more?

    To discuss your Recovery Loan Scheme (RLS) requirements, please email us at [email protected] or call us to discuss.

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    WHAT OUR CUSTOMERS SAY ABOUT US

    "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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