Growth Guarantee Scheme: government-backed loans explained

The Growth Guarantee Scheme (GGS) is a government-backed lending scheme that helps UK small and medium-sized businesses borrow up to £2 million. The government guarantees 70% of the facility to the lender, which makes banks more willing to lend, but your business still owes the full amount. You apply through an accredited lender, and the British Business Bank runs the scheme for the Department for Business and Trade.

What is the Growth Guarantee Scheme?

The GGS is the successor to the Recovery Loan Scheme, and it shares credit risk between the lender and the government. GOV.UK’s scheme page, updated 29 June 2026, says the British Business Bank delivers it on behalf of the Secretary of State for Business and Trade.

The guarantee protects the lender, not you. If the business defaults, the lender recovers what it can and then claims 70% of the shortfall from the government. The borrower always remains liable for 100% of the debt.

Who can apply?

A business can use the GGS if it meets all of the GOV.UK tests:

• it trades in the UK
• its turnover is no more than £45 million, measured across the group
• more than 50% of its turnover comes from trading activity
• it can show it is viable
• it is not a business in difficulty, and is not in relevant insolvency proceedings

Start-ups and established businesses can both apply, from sole traders to companies with up to 249 staff. GOV.UK lists 17 eligible sectors, including construction, manufacturing, health and retail, and all UK nations and regions.

What can you borrow?

You can borrow up to £2 million per business group. Minimum sizes vary by product and lender. Virgin Money, for example, sets a £30,000 minimum for GGS term loans.

Borrowers under the Northern Ireland Protocol face a lower £1 million cap, according to Virgin Money’s lender terms. The £2 million limit is a total across all your GGS facilities, not per product.

What changed in July 2026?

HM Treasury announced an expansion on 13 July 2026, ahead of the Chancellor’s Mansion House speech. The changes are:

1. Higher turnover limit. The cap rises from £45 million to £54 million a year.
2. Longer terms. The maximum term rises from six years to 10 years for loans up to £1.1 million.
3. More capacity. Supported lending is expected to rise by about £2 billion a year, from £1.35 billion to £3.35 billion by 2028/29.
4. More businesses. The target is 20,000 businesses a year by 2028/29, up from about 8,000.

The Treasury did not give a date when the new terms take effect at each lender. GOV.UK’s scheme page still showed the £45 million limit when we checked on 6 November 2026, so confirm with your lender which terms it currently offers.

The Treasury says the scheme has delivered over £3.7 billion of finance since 2022, with £2.5 billion going to businesses outside London and the South East.

Do you need a personal guarantee?

A lender can ask for a personal guarantee on a GGS facility of any size if that is its normal practice. The scheme rule is that the lender cannot take your principal private residence, your main home, as security.

Read the guarantee terms before you sign. Our guide to personal guarantees explains what you are signing up to and how to limit the exposure.

How to apply

You do not apply to the government or the British Business Bank directly. Follow these steps:

1. Work out what you need. Size the loan from a cash flow forecast and decide which product fits.
2. Pick an accredited lender. The British Business Bank publishes the list. It includes high street banks, challenger banks and specialist lenders.
3. Prepare your papers. Expect to provide recent accounts, management accounts, a forecast and details of existing debt.
4. Ask for GGS by name. The lender decides whether a facility goes under the scheme.
5. Compare the offer. The lender sets the interest rate and fees, so compare it with standard business loan interest rates.

The lender makes every credit decision. Being eligible for the GGS does not mean a lender must lend to you.

Which applies to you?

• If your turnover is under £45 million and you need a larger sum, a GGS term loan or overdraft may suit, subject to your lender’s minimum.
• If you are a start-up needing up to £25,000, compare the government Start Up Loans scheme, which lends to individuals.
• If your turnover is between £45 million and £54 million, ask lenders whether they have applied the higher July 2026 limit yet.
• If you are unsure which finance type fits, read our guide to types of business finance first.

What to do now

Check your turnover on a group basis, since connected companies count. Ask two or three accredited lenders for quotes, and ask each whether the 10-year term is available. If you are refinancing, check any early repayment fees on your current loan.

Frequently asked questions

Is the Growth Guarantee Scheme a government loan?

No. The loan comes from a commercial lender. The government guarantees 70% of it to the lender, and your business must repay 100%.

What is the maximum Growth Guarantee Scheme loan?

You can borrow up to £2 million per business group, or £1 million for businesses covered by the Northern Ireland Protocol.

What is the turnover limit for the Growth Guarantee Scheme?

GOV.UK sets the limit at £45 million. HM Treasury announced on 13 July 2026 that it will rise to £54 million, so check which limit your lender applies.

Can a lender take my house as security under the GGS?

No. Lenders cannot take your principal private residence as security, but they can still ask for a personal guarantee.

How long can a GGS loan last?

Terms have been up to six years. Following the July 2026 announcement, loans up to £1.1 million can run for up to 10 years once lenders apply the change.