10 Reasons Why You Should Apply for the Government’s Growth Guarantee Scheme

The successor scheme to the Recovery Loan Scheme, the Growth Guarantee Scheme launched in July 2024.

The Growth Guarantee Scheme (GGS) aims to improve the terms on offer to borrowers. If Funding Circle can offer a commercial loan on better terms, we will do so.

Offering GGS alongside our fixed-rate business loans allows us to say yes to more businesses, and provide the finance you need to thrive and drive your business forward. 

Not sure if the GGS is right for you? Wondering about some of the features of the Growth Guarantee Scheme? Here are 10 reasons why you should apply today:

1. The Growth Guarantee Scheme is designed by the Government specifically to help businesses access finance

The Growth Guarantee Scheme was designed by the Government expressly to support access to finance for UK small businesses as they look to invest and grow.  

Money is loaned through accredited lenders, such as Funding Circle, and the Government gives the lender a 70% guarantee on the loans.

That means that if the business can’t repay the loan, the Government will reimburse the lender. Although the borrower remains liable for the full loan amount, the guarantee allows lenders to say yes to more businesses. 

2. Borrow £25,001 to £250,000 with a GGS loan through Funding Circle

The Growth Guarantee Scheme can generally support facility sizes of up to £2m per business group for businesses outside the scope of the Northern Ireland Protocol, and up to £1m per business group for Northern Ireland Protocol borrowers. At Funding Circle, we offer GGS loans of £25,001 to £250,000.

3. More businesses are eligible for the Growth Guarantee Scheme

There are just a handful of criteria you need to meet to qualify for a GGS loan from Funding Circle. Your business needs to:

• Have a turnover of less than £45 million 
• Have been trading in the UK for a minimum of 2 years
• Be a limited company 
• Use the loan for business purposes, such as working capital or investment 
• Not be in difficulty or have any collective insolvency proceedings ongoing

The following types of businesses are not eligible for GGS loans:

• State-funded primary or secondary schools
• Public sector bodies
• Banks and building societies 
• Insurers and reinsurers, with the exception of insurance brokers

4. The money can be used for almost any purpose

GGS loans can be used for any legitimate business purpose, including managing cash flow, investment and growth.

5. The Growth Guarantee Scheme terms are flexible

GGS loans through Funding Circle are available from six months to six years.

6. There are no fees for full early repayment

If you want to settle your GGS loan through Funding Circle in full early, you can do so with no fees and you’ll only pay interest on the time you borrow.

7. You can access GGS funding even if you already have a Government-backed loan

If you took out a loan under the Coronavirus Business Interruption Loan Scheme (CBILS), Bounce Back Loan Scheme (BBLS) or Recovery Loan Scheme (RLS) before June 30, 2024 you are still eligible to apply for the Growth Guarantee Scheme (GGS). 

The amount you have borrowed under a previous Government scheme may reduce the maximum amount you are eligible for under GGS.

It’s important to note that as GGS loans are supported by a Government guarantee, they count as a form of subsidy. There are limits on the amount of subsidy a business can receive. You can find more information on this on the British Business Bank’s website, or in your Subsidy Certification document if and when you accept a loan offer.

8. The application process is simple

To keep things simple, you only need to make one 7-minute application to be considered for both the Growth Guarantee Scheme and our own fixed-rate business loans. We’ll then assess which product your business is eligible for, on the best possible terms. 

If we can offer a business a loan on better terms without GGS, we will do so.

9. There’s no impact on your credit score to apply

If you’re a limited company or LLP, you can now apply for a loan and get a personalised quote without impacting your credit score. This is because we only run a soft credit check search on your personal and business credit reports when you apply, meaning you can find out what you could borrow and decide if it’s right for you with complete peace of mind.

10. You’ll get a quick decision and the payout is fast

If approved, you can get a decision on your loan application in as little as 1 hour and, once you accept, the money is paid out typically within 48 hours.

To see how we can help you, check your eligibility for a GGS loan in just 30 seconds. 

14/11/24: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.