GGS Latest Update on the 2025 Government Growth Guarantee Scheme

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The Government Growth Guarantee Scheme (GGS) launched with accredited lenders on 1 July 2024, replacing the previous Recovery Loan Scheme (RLS). Designed to support UK businesses, the GGS offers facility sizes of up to £2 million, providing British Business Bank accredited lenders with a 70% government-backed guarantee. This scheme has been a valuable tool for businesses looking to manage cash flow or make investments, offering flexibility and security.

Key Benefits of the Growth Guarantee Scheme:

Personal Guarantees: Personal guarantees can be taken at the lender’s discretion. However, Principal Private Residences cannot be taken as security within the scheme, offering peace of mind to business owners.

 

Eligible Uses: The finance can be used for any legitimate business purpose, whether that’s managing cash flow, purchasing equipment, or funding growth initiatives.

 

Eligibility: Borrowers must be engaged in trading activity within the UK, with most businesses required to generate more than 50% of their income from trading activity.

 

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Current Update on GGS

The Growth Guarantee Scheme is still scheduled to run until 31 March 2026, so there is plenty of time for businesses to take advantage of it. However, we’ve recently seen some lenders withdraw from the scheme, reducing the number of banks offering this product. This means fewer options are available directly under the GGS.

 

What This Means for Your Business...

While the GGS provides a helpful option for many businesses, it’s important to note that approval is not guaranteed. Each lender assesses applications based on their own criteria, and some businesses may find they don’t qualify for the funding they need under the scheme.

 

This is where a finance broker can make a real difference. By discussing your unique circumstances, a broker can explore a range of funding options—whether through the GGS or alternative products. This tailored approach ensures you have the best chance of securing the right funding solution for your business.

 

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Growth Guarantee Scheme (GGS)  FAQs

The Growth Guarantee Scheme (GGS) is available to UK businesses with a turnover of up to £45 million. This government-backed business loan scheme, which replaced the Recovery Loan Scheme (RLS) and Bounce Back Loans, helps eligible businesses access finance for growth, investment, and cashflow support. If your business meets the turnover criteria, you could be eligible for funding through accredited lenders.

A finance broker can help you navigate the GGS, compare lending options, and explore alternative business loan solutions.

To qualify for the Growth Guarantee Scheme (GGS), your business cannot be classified as "in difficulty" or currently undergoing insolvency proceedings. However, if you're struggling with business debt or cashflow challenges, there may still be funding options available.

A business finance broker can assess your unique situation and explore alternative solutions, such as business debt consolidation, cashflow loans, or refinancing existing liabilities.

Speaking to an expert could help you find the right financial support, even if the GGS isn't an option.

To learn more about improving your business credit score, check out or blog on Why Finance Applications Get Declined & How to Avoid Rejection

The Growth Guarantee Scheme (GGS) is a UK government-backed business loan initiative designed to help businesses in the UK access funding. It works by providing lenders with a 70% government guarantee, encouraging them to offer finance to businesses that might otherwise struggle to secure funding.

Here’s how it works:

  1. Apply through a qualifying lender – A finance broker can help you with identifying the most suitable options.
  2. Pass lender eligibility checks – Your business must be UK-based, with a turnover of up to £45 million and not classified as in difficulty.
  3. Access different finance options – The scheme supports term loans, asset finance, invoice finance, and overdraft-style facilities.

A finance broker can help you compare lenders, understand repayment terms, and explore alternative business loan solutions if the GGS isn’t the best fit for your needs.

To be eligible for the Growth Guarantee Scheme (GGS), your business must meet the following criteria:

✅ Be UK-based and actively trading
✅ Have a turnover of up to £45 million
✅ Not be classified as a business in difficulty or in insolvency proceedings
✅ Be seeking finance for business purposes, such as growth, investment, or cash flow support

The scheme is available through accredited lenders, and loan terms will vary depending on the provider.

For more details, you can visit the British Business Bank (BBB) website or get in touch with James Murray Finance for expert guidance on your eligibility and alternative business loan options.

The Growth Guarantee Scheme (GGS) is not a direct government loan. Instead, it is a government-backed guarantee designed to help lenders provide finance to eligible UK businesses. The scheme is managed by the British Business Bank (BBB) and supports established businesses rather than start-ups.


However, if you’re looking for a government-backed start-up loan, you can apply for a Start Up Loan through the UK government, which offers funding of up to £25,000 for new businesses. This loan comes with a fixed interest rate and includes free mentoring to help you grow your business.


You can find more details and apply here for the Start Up Loan Scheme.


If you need help exploring alternative business loan options, James Murray Finance can provide expert advice tailored to your needs.

The Recovery Loan Scheme (RLS) and the Growth Guarantee Scheme (GGS) are both UK government-backed finance schemes, but they are different:


While both schemes provide business loans through accredited lenders, the GGS focuses on supporting long-term business growth, whereas the RLS was specifically designed to help businesses recover from the pandemic.


The Recovery Loan Scheme (RLS) was launched in April 2021 and closed in June 2024. The Growth Guarantee Scheme (GGS) replaced RLS in July 2024 and continues into 2026.


If you're unsure which business finance options suit your needs, James Murray Finance can help you navigate the best funding solutions.

The Growth Guarantee Scheme (GGS) is different from the Bounce Back Loan Scheme (BBLS), although both are government-backed finance schemes.

 

The Bounce Back Loan Scheme was introduced as an emergency measure during COVID-19, providing businesses with loans of up to £50,000, backed by a 100% government guarantee. It had a fixed interest rate of 2.5% and offered an interest-free period for the first 12 months. This scheme closed in March 2021.

 

In contrast, the Growth Guarantee Scheme (GGS) is designed to support business growth and cash flow rather than emergency relief. It provides a 70% government guarantee to lenders, but businesses must meet eligibility criteria, including a turnover limit of £45 million. Loan terms and interest rates are set by the lenders rather than the government.

 

While the GGS isn’t a direct replacement for Bounce Back Loans, it can still help businesses access finance.

 

If you need guidance on whether the GGS or another business loan is right for you, James Murray Finance can help you explore your options.

Yes, you can apply for a Growth Guarantee Scheme (GGS) loan even if you previously had a Bounce Back Loan (BBL), as long as you meet the eligibility criteria.

 

To qualify for the Growth Guarantee Scheme (GGS) your business must:
✅ Be UK-based and actively trading
✅ Have a turnover of up to £45 million
✅ Not be classified as a business in difficulty or undergoing insolvency proceedings
✅ Pass lender affordability checks

 

Unlike the Bounce Back Loan Scheme, which was 100% government-backed, the GGS provides a 70% guarantee to lenders, meaning approval depends on the lender’s assessment of your business finances.

If you previously had a Bounce Back Loan (BBL) and are struggling with repayments, refinancing or alternative business loan options may be worth exploring. James Murray Finance can help you find the best funding solution for your business.

Yes, the Growth Guarantee Scheme (GGS) can be used for refinancing existing business loans, including those taken under previous schemes like the Recovery Loan Scheme (RLS). However, whether refinancing is possible will depend on the lender’s terms and your business’s financial position.

To refinance using the GGS, your business must:
✅ Be UK-based with a turnover of up to £45 million
✅ Meet lender affordability and eligibility criteria
✅ Not be classified as a business in difficulty or undergoing insolvency

Lenders will assess whether refinancing under the GGS provides a clear business benefit, such as lower interest rates, improved cash flow, or better repayment terms.

If you’re looking to consolidate expensive debt or restructure your business finance, a finance broker like James Murray Finance can help you explore your options.

To learn more about re-financing business loans, read our article: Can I Refinance My Business Loan?

CHECK OUT OUR LATEST VIDEO ON YOUTUBE REGARDING THE GOVERNMENT GROWTH GUARANTEE SCHEME:

In Summary

Need funding for your business? The GGS may be an option for you. But remember, lenders assess applications based on credit checks, fraud prevention, and KYC requirements. If you qualify for standard finance, they’ll offer it—but if not, the Growth Guarantee Scheme (GGS) could help. 

 

This government-backed scheme supports SMEs when traditional loans fall short. Every lender makes their own decision, so if one says no, others may still approve you. At James Murray Finance, we work with multiple lenders to find the right funding for your business. Whether it’s a commercial loan or GGS-backed finance, we can help.

 

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Next Steps

If you’re considering the Growth Guarantee Scheme or exploring other finance options, now is the time to act. Speak to a trusted finance broker who can guide you through the process, help you understand your eligibility, and find the best solution for your business needs.

Want to book a FREE consultation? Get in touch today to discuss your options!

Keep in touch with James Murray Finance for free business and car finance insights and updates. Subscribe to the blog via LinkedIn HERE or follow on social media. 

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Disclaimer: This blog post is intended for informational purposes only and does not constitute financial advice. All information is collated at time of writing and the best efforts have been made to ensure accuracy.

 

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About the author

James Murray

Meet James, the founder of James Murray Finance. With nearly two decades of industry experience and eight years dedicated to the finance sector, James has worked with a wide range of businesses, from startups to established enterprises. Read More >

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