Growth Guarantee Scheme (GGS) Business Loans for UK SMEs
With more than 5.5 million small businesses now operating in the UK, and SMEs accounting for over 99% of all British enterprises, it’s clear that small and medium-sized businesses are the driving force behind the UK economy. Recognising their vital role, the government continues to roll out initiatives to fuel their growth and resilience. Below, we break down what the scheme offers, who qualifies, and how your business can apply.
Eligible small and medium-sized enterprises can apply for loans of up to £2 million, backed by a 70% government guarantee. This reduces the risk for lenders and helps unlock vital funding for key business needs such as purchasing equipment, managing payroll, investing in marketing, and enhancing working capital
By mitigating lender risk, the scheme also aims to offer borrowers more competitive interest rates, ultimately supporting SME growth and driving economic development across the UK.
How does the government guarantee scheme help UK businesses?
Businesses can borrow up to £2 million, giving them the capital needed to scale, invest in infrastructure, or manage operational costs.
The government guarantees 70% of the loan amount, encouraging lenders to offer finance to more businesses, including those that may not qualify under traditional criteria.
Funds can be used for key expenses such as purchasing equipment, marketing campaigns, payroll, or expanding into new markets.
Unlike its predecessor, the scheme focuses on business growth and long-term development, helping SMEs move beyond pandemic recovery.
Most UK-based SMEs across various sectors can apply, increasing access to funding for a diverse range of industries.
The government guarantee may result in lower interest rates or improved terms, making borrowing more affordable for businesses.
Running until 31 March 2026, the scheme offers businesses a stable window to plan their financing needs strategically.
Who is eligible for the Growth Guarantee Scheme?
To qualify, your business must generate an annual turnover of less than £45 million. This scheme is tailored for small and medium-sized enterprises (SMEs), and its predecessor, the Recovery Loan Scheme, primarily benefited businesses with fewer than 50 employees. UK-based sole traders, limited companies, LLPs, and cooperative societies that have been actively trading for more than two years may be eligible to apply.
Unfortunately, banks, publicly funded bodies, and companies involved in insolvency proceedings are not eligible. The scheme also excludes businesses earning over 50% of their income from passive or non-trading activities such as property rentals.
If you’re eligible, you could access funding up to £2 million. A strong business plan is essential, and your company must operate within the UK. Importantly, even if you previously received financial help through the Bounce Back Loan Scheme or Recovery Loan Scheme, you can still apply for this support.
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Growth Guarantee Scheme frequently asked questions
This funding is designed to fuel business expansion and development. Common uses include hiring new staff, upgrading equipment, tech investment, launching new products or services, stock purchases, or even managing cash flow fluctuations.
The scheme covers term loans, working capital finance, asset-based lending, and invoice finance. Some lenders offer customised options for specific sectors.
Yes. Startups and newer businesses can qualify if they meet the lender's requirements, such as being UK-registered and having a viable plan for growth.
You can apply via an accredited lender or let Prospera Funding handle the process. We’ll match you with the right lender and help with the paperwork.
No worries, Prospera Funding can help you access secured, unsecured, or startup funding options through our broader lender network.
Usually, full collateral isn’t required. A partial government guarantee is in place, but lenders may still request a personal or business guarantee depending on the loan.
With the right documents, you might get approved in a few days. Complex cases or busy periods could take longer.
Yes, if you meet the criteria and stay within borrowing limits. Check with a broker or lender first to manage risk properly.
Interest rates are generally more competitive than standard business loans. Final pricing depends on your credit profile and financial performance.
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