The Growth Guarantee Scheme Explained: Government-Backed Business Loans

The Growth Guarantee Scheme (GGS) is a UK government-backed programme designed to improve access to finance for smaller businesses. If a bank has been hesitant, GGS-backed lending can open doors. Here's how it works.

What is the Growth Guarantee Scheme?

Under the GGS, the government provides accredited lenders with a partial guarantee against the outstanding balance of eligible facilities. This reduces the lender's risk and can make them more willing to support businesses that might otherwise fall just outside standard criteria. Importantly, the borrower remains fully liable for repaying the debt - the guarantee protects the lender, not the borrower.

What can it support?

The scheme can back a range of facilities, including term loans, overdrafts, invoice finance and asset finance, giving businesses flexibility in how they fund growth or working capital.

Who is eligible?

• UK-based smaller businesses that meet the scheme and lender criteria.
• Businesses with a viable proposition that generates a genuine funding need.
• Applicants able to evidence affordability in the normal way.

Eligibility and scheme details can change over time, so it's worth confirming the current position with an accredited lender or finance specialist before applying.

How we help

Not every lender is accredited for the scheme, and matching your need to the right accredited funder makes the difference. We identify suitable lenders and structure the application to fit both the lender's and the scheme's requirements. At Sadi's Commercial Finance we help UK businesses access government-backed and mainstream funding alike.

Exploring government-backed funding? See our business loans service or speak to a specialist.