The Government Growth Guarantee Scheme (GGS): How We Can Help Your Business Access It Before It Ends in March 2026

Access to the right funding at the right time can make the difference between a business that thrives and one that struggles to adapt. The Government Growth Guarantee Scheme (GGS), backed by the British Business Bank, was introduced to support UK businesses looking to grow, invest, or strengthen their financial position.

However, the scheme is only open until 31 March 2026, meaning the clock is ticking for business owners who want to take advantage of this powerful initiative.

At Principal Business Finance Ltd, we help businesses across the UK secure GGS-backed loans through our network of accredited lenders, ensuring you can unlock the funding needed to sustain growth while the scheme is still available.

In this article, we explore what the GGS is, how it works, and why acting early could give your business a significant edge.

What Is the Government Growth Guarantee Scheme (GGS)?

The Growth Guarantee Scheme was launched as a successor to the Recovery Loan Scheme (RLS). It aims to support small and medium-sized enterprises (SMEs) by improving access to finance, especially during times of uncertainty or rising costs.

The GGS allows lenders to offer loans, overdrafts, asset finance, and invoice finance facilities to UK businesses that may not otherwise meet traditional lending criteria.

To make this possible, the UK government provides lenders with a 70% guarantee on eligible facilities, reducing their risk and making it easier for businesses to secure funding.

It’s important to note that while the guarantee supports the lender, the borrower remains fully liable for the debt.

How Businesses Can Use the GGS

The GGS can be used for a wide range of business purposes, including:

• Investing in new equipment or vehicles

• Expanding premises or operations

• Supporting working capital and cash flow

• Refinancing existing debt on more manageable terms

• Funding acquisitions, management buyouts, or restructuring

The flexibility of the scheme means it can be tailored to suit your unique needs whether you’re a new start-up seeking early-stage support or an established business planning major growth.

Key Benefits of the Growth Guarantee Scheme

1. Easier Access to Funding
   Because the government guarantees 70% of the lender’s exposure, lenders can approve applications from businesses that may not meet standard credit requirements.

2. Wide Range of Finance Options
   The GGS covers multiple forms of finance, including term loans, asset finance, invoice finance, and overdrafts, giving you flexibility depending on your business’s priorities.

3. Support for All Sectors
   Whether you operate in manufacturing, construction, retail, or hospitality, the scheme is available to all eligible UK businesses, provided they meet standard affordability checks.

4. Competitive Interest Rates and Terms
   While rates vary depending on the lender and risk profile, GGS-backed loans often come with favourable terms compared to traditional lending options including longer repayment periods.

5. No Restriction on Growth Goals
   Unlike some grants or funding programmes, GGS-backed finance isn’t restricted to specific uses. It can support any legitimate business purpose that contributes to growth or stability.

6. Available Until 31 March 2026
   With less than two years remaining before the scheme closes, early applicants are in the strongest position to secure approval before lenders reach their capacity limits.

How Principal Business Finance Ltd Can Help

At Principal Business Finance Ltd, we make the GGS application process fast, simple, and stress-free.

We work directly with a network of accredited GGS lenders including both high street banks and specialist funders meaning we can find the right lender for your situation and handle the application process on your behalf.

Our team ensures you:
✅ Understand the eligibility criteria and prepare the necessary documents.
✅ Get matched with a lender whose terms suit your business goals.
✅ Receive clear communication throughout the process.

By working with us, you benefit from direct broker access points to underwriters and decision-makers, helping to speed up approval and cut through the usual layers of bank bureaucracy.

Who Is Eligible for the GGS?

To qualify for a Growth Guarantee Scheme loan, your business must:

• Be trading in the UK and generating more than 50% of its turnover domestically.

• Have a sound borrowing proposal and demonstrate affordability.

• Not be in collective insolvency proceedings.

• Have a maximum turnover of £45 million.

The amount you can borrow will depend on your business size, turnover, and the intended purpose of the loan but most SMEs can access facilities ranging from £25,000 to £2 million.

Why Now Is the Time to Apply

The Growth Guarantee Scheme will close for new applications on 31 March 2026, but lenders may stop accepting new cases well before that deadline once their allocation of guaranteed funding is reached.

Given the current climate of high operating costs, supply chain challenges, and inflation pressures, securing funding under this scheme now could provide the liquidity and stability your business needs to grow confidently into 2025 and beyond.

Businesses that delay may find fewer lenders available or less favourable terms once the scheme ends.

Final Thoughts

The Government Growth Guarantee Scheme is one of the most impactful business funding initiatives in the UK today but time is running out to take advantage of it.

Through Principal Business Finance Ltd, your business can access this opportunity quickly and efficiently, with the support of a team that understands how to structure finance in a way that supports both immediate needs and long-term goals.

If your business is planning to expand, invest, or consolidate now is the moment to act. Contact us on 01604217998, email info@principalbusinessfinance.co.uk, or enquire here.