Published: July 16th, 2024
The British Business Bank has launched its Growth Guarantee Scheme, the successor to the Recovery Loan Scheme.
The new scheme is designed to support access to finance for UK smaller businesses as they look to invest and grow and is expected to support around 11,000 smaller businesses between 1 July 2024 and 31 March 2026.
The British Business Bank has so far accredited 41 lenders for the Growth Guarantee Scheme.
Following their accreditation, each lender needs to put in place the operations required to start lending under the scheme, and they will be listed on the British Business Bank website once they are ready to start receiving applications.
Twenty lenders have so far confirmed they are open for applications. Further lenders are going through the accreditation process and will be accredited over the coming weeks.
These lenders will provide a wide range of finance types to smaller businesses, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.
The terms of the scheme are intended to remain broadly unchanged from its predecessor, the Recovery Loan Scheme, enabling continuity and consistency for lenders and the business community.
Reinald de Monchy, managing director, guarantee and wholesale solutions, British Business Bank, said:
“We’re excited to launch the Growth Guarantee Scheme, which will allow lenders to offer more finance to their customers. This will help to generate more sustainable growth across the UK and provide a springboard to many smaller businesses to scale up or stay ahead.”
Further information on the Growth Guarantee Scheme, including the current list of accredited lenders, is available at https://www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme/accredited-lenders
The Growth Guarantee Scheme provides the lender with a 70% government-backed guarantee and the borrower always remains 100% liable for the debt. The British Business Bank will administer the Growth Guarantee Scheme on behalf of the Secretary of State for Business and Trade.
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