Act Now: Unlock Growth via the Government’s Growth Guarantee Scheme (GGS)

If your business is exploring new ways to invest, scale, or stabilise during economic uncertainty, there’s a powerful government-backed option available the Growth Guarantee Scheme (GGS). But time is running out: applications close on 31 March 2026. Here’s why acting now could be a game-changer for your business and how Principal Business Finance Limited plays a crucial role in securing it.

What Is the Growth Guarantee Scheme?

The GGS succeeded the Recovery Loan Scheme and officially launched on 1 July 2024. Designed to support small and medium-sized businesses, it offers access to finance with a 70% government-backed guarantee to the lender, making it easier to secure funding even when traditional lenders hesitate.

Key details you should know:

• Facilities up to £2 million, with a lower cap of £1 million for businesses under Northern Ireland protocol rules.

• Available funding types include term loans, overdrafts, invoice finance, and asset finance.

• Repayment flexibility: term loans and asset finance up to six years; overdrafts and invoice finance up to three years.

• Scheme extended through March 2026; until recently, it was unclear whether it would continue.

The Scale of Deployment

By March 2025, the scheme had already supported £2.35 billion in financing, benefiting over 14,820 UK businesses, with much of that investment flowing outside London and the Southeast.

Additionally, by November 2024, the GGS had delivered over £250 million in lending in just four months demonstrating early momentum.

This support spans a wide range of sectors, including retail (17%), manufacturing (15%), construction (12%), and professional services (9%).

Why Businesses Should Act Now

1. Limited-Time Access

The GGS ends on 31 March 2026. A fund of this scale and flexibility is rare. Missing the deadline means losing that advantage.

2. Widened Lender Appetite

Thanks to the guarantee, lenders are more willing to approve businesses with limited assets, seasonal revenue, or uneven cash flow.

3. Flexible Product Types

Whether your need is for a short-term liquidity boost via invoice finance or long-term capital investment through asset funding, the GGS can accommodate.

4. Improved Terms

The government-backed guarantee reduces lender risk, often translating into better interest rates or more favourable terms.

How Principal Business Finance Limited Enhances Access

Navigating the GGS landscape can be complex. Not all accredited lenders offer the full range of products or the same terms. That’s where Principal Business Finance steps in:

• Access to accredited lenders: We connect your business with the right lending partner for your needs.

• Speed of application: We work directly with underwriters and decision-makers to accelerate approvals.

• Structuring savvy: We help combine finance types working capital, assets, overdraft into a solution tailored to your operations.

• Ongoing support: Beyond setup, we monitor headroom, future growth needs, and opportunities to refinance or expand the facility.

Example: Putting GGS to Work

Imagine a small manufacturing firm needs:

• £500,000 asset finance for new machinery,

• £100,000 invoice finance to manage sudden client orders,

• A £200,000 cashflow for seasonal supply costs.

GGS can accommodate all three within its guarantee framework. Principal Business Finance would structure the application across multiple accredited lenders, ensuring your business gets the full suite of finance without overextending credit lines or depleting reserves.

Final Thoughts

The Growth Guarantee Scheme represents a remarkable opportunity for UK SMEs to invest, grow, and stabilise but only until 31 March 2026. With over £2.35 billion already deployed, this government-backed guarantee is actively powering business growth.

Principal Business Finance Limited stands ready to help UK businesses navigate this opportunity offering speed, structure, and strategic financing access when it matters most.

Connect with us today let’s make your growth plan happen before the GGS window closes. Contact us on 01604217998, email info@principalbusinessfinance.co.uk, or enquire here.