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.
Scheme Features
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- 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 Governmentbacked 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.
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)
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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.
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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.
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.
Need to know more?
To discuss your Recovery Loan Scheme (RLS) requirements, please email us at [email protected] or call us to discuss.