British Business Bank Launches the Growth Guarantee Scheme
Welcome to the Recovery Loan Scheme successor ...
Posted by Roger Eddowes on 18/07/2024 @ 8:00AM
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 Growth Guarantee Scheme has been welcomed by many business leaders and industry experts!
The Government announced many different schemes to to provide support to businesses of all sizes including the Coronavirus Business Interruption Loan Scheme (CBILS), the Bounce Back Loan Scheme (BBLS) and then moved onto the Recovery Loan Scheme.
"These schemes have now ended, so what replaces them?"
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.
"The Growth Guarantee Scheme has been welcomed by many business leaders and industry experts!"
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.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the Growth Guarantee Scheme, it may be a great idea to call me on 01908 774320 and let's see how I can help.
Don't forget to stay updated with our daily social media posts on Facebook.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
No unauthorised use, duplication, distribution or modification to any original content contained within this blog is permitted without prior written permission of the author. All other trademarks and registered names are acknowledged.
