Principal Business Finance
Growth Guarantee Scheme (GGS)
Government-backed business funding of up to £2 million.
The essentials
Growth Guarantee Scheme (GGS) explained
The Growth Guarantee Scheme supports access to commercial finance through accredited lenders. Principal Business Finance can help you explore relevant funding options, subject to eligibility and lender assessment.
Up to £2 million
The usual maximum is £2 million per business group, subject to eligibility, affordability and subsidy limits.
Funding from £1,000
Asset finance, invoice finance and asset-based lending start at £1,000; term loans and overdrafts start at £25,001.
Terms up to six years
Published terms run from three months to six years for loans and asset finance, or three years for overdrafts, invoice finance and asset-based lending.
What the government guarantee means
The scheme provides a 70% government-backed guarantee to the lender. Your business remains 100% responsible for repaying the borrowing.
The guarantee does not mean funding is approved or unsecured. Personal guarantees and other security may be required, although a principal private residence cannot be taken as security under the scheme.
Eligibility, costs and facility terms depend on the scheme rules and provider. The British Business Bank publishes the current scheme information.
Who can apply?
Growth Guarantee Scheme eligibility
Your business must meet the scheme rules and the lender’s own criteria; eligibility does not guarantee approval.
Key eligibility checks
- UK operations: carry out trading activity in the UK.
- Turnover: up to £45 million annually, measured across the group where applicable, under the currently published rules.
- Trading income: normally more than 50% of income must come from trading; registered charities and further education colleges are exempt.
- Viability: demonstrate a viable business proposition and capacity to repay.
- Financial position: the business must not be in difficulty or relevant insolvency proceedings.
- Subsidies: confirm that the facility remains within applicable subsidy allowances.
Announced scheme enhancements
The British Business Bank has announced a turnover ceiling of £54 million and terms of up to ten years for loans and asset finance. Its current guidance says these enhancements are being implemented with lenders, while existing terms remain operational; availability should be confirmed for each application.
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Explore related options
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Your next step
Let’s talk about your requirements.
Share your plans and our team will explore the funding options with you.
Finance is subject to the provider’s assessment and approval. Rates, fees, terms and security requirements vary. Principal Business Finance Limited is a credit broker, not a lender.