The COVID-19 pandemic had a devastating impact on businesses around the world, and the UK was no exception. As the country slowly emerged from lockdowns and restrictions, many businesses struggled to stay afloat ...
The new Growth Guarantee Scheme runs until the 31st of March 2026 and aims to continue to provide much-needed support to businesses. It is a government-backed loan scheme that will provide sums of up to £2 million to businesses of all sizes.
There is a minimum facility of £1,000 for asset finance, invoice finance and asset-based lending, and £25,000 for term loans and overdrafts. The British Business Bank says it expects to support around 11,000 smaller businesses with this latest scheme.
The loans are available through a network of accredited lenders, including high-street banks, challenger banks, and asset-based lenders. This wide range of lenders will make it easier for businesses to access the financial support they need.
One of the key features of the Growth Guarantee Scheme is that the government will provide a guarantee to lenders for 70% of the loan amount. This means that businesses will benefit from lower interest rates and better repayment terms.
The government will also cover the first 12 months of interest payments, making the loans even more affordable for businesses and encouraging lenders to approve marginal cases. Remember though, as with earlier schemes, the borrower always remains 100% liable for the debt.
I believe this scheme will provide a much-needed lifeline for businesses. It is also seen as a crucial step in supporting the UK economy and helping businesses to grow and thrive which is something the new Labour Government is very keen on promoting.
If you are a business owner, be sure to explore this scheme and see how it can benefit your business.
If you feel inspired to find out more about anything I've said here, do call me on 01908 774320 or leave a comment below and I'll be in touch as soon as I can.