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Growth Guarantee Scheme

It feels like a lifetime ago we were wrangling with new words in the news following COVID19 –Furlough, Bounce back loans, CBILS and more recently RLS. (I will be honest and say I thought furlough was something farmers did with their crops!!)

The last edition of the Recovery Loan Scheme, RLS3, ceased at the end of June and was replaced on the 1st of July 2024 with another acronym-based loan, GGS, better known as the Growth Guarantee Scheme.

The Growth Guarantee Scheme aims to improve the terms on offer to borrowers and has been designed to support access to finance for UK small businesses as they look to invest and grow.

Businesses that took out a CBILS, BBLS, or RLS facility before 30 June 2024 are not prevented from accessing the Growth Guarantee Scheme, although in some cases it may reduce the amount a business can borrow.

The Growth Guarantee Scheme can generally support facility sizes of up to £2m per business group and provides the lender with a 70% government-backed guarantee. Businesses outside the scope of the Northern Ireland Protocol, and up to £1m per business group for Northern Ireland Protocol borrowers, although it will vary by provider.

The GGS facility can be used for any legitimate business purpose including, but not limited to, managing cashflow, or investment and growth purposes

Key features include:

  • Up to £2m per business group: The maximum amount of a facility provided under the scheme is generally £2m per business group. Minimum facility sizes vary, starting at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts;
  • Wide range of products: GGS supports term loans, overdrafts, asset finance, invoice finance and asset-based lending facilities. Not all lenders will be able to offer all products;
  • Term length: Term loans and asset finance facilities are available from three months up to six years, with invoice finance and overdraft based lending available from three months up to three years;
  • Access to multiple schemes: Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2024 are not prevented from accessing GGS, but borrowing under these schemes may reduce the maximum amount the borrower is eligible for;
  • Pricing: Interest rates and fees charged by lenders will vary and will depend on the specific lending proposal. The lender’s pricing will take into account the benefit of the Government guarantee;
  • Personal Guarantees: Personal guarantees can be taken at the lender’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme;
  • Guarantee is to the lender: The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt;
  • Decision-making delegated to the lender: GGS-backed facilities are provided at the discretion of the lender. Lenders are required to undertake their standard credit and fraud checks for all applicants

Eligibility criteria include:

  • Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group);
  • UK-based: The borrower must be carrying out trading activity in the UK and generating more than 50% of its income from trading activity;
  • Viability test: The lender must consider that the borrower has a viable business proposition;
  • Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings;
  • Subsidy limits: Borrowers will need to provide written confirmation that receipt of the GGS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received

This new scheme is likely to run until March 2026, if you would like to see how a loan through the Growth Guarantee Scheme could help to develop and grow your business, please get in touch with your dedicated Business Manager, or give us a call on 01242 395507.

Acorn,

A fresh approach to finance.

Nicki was very helpful and kept us up to date with everything - even when she had time off she made sure we were updated. Whenever there was a query she got to it quickly and helped us understand the issue so we could answer and solve it straight away. It became a very simple process so we could focus on our business.
Very helpful and kept up to date with everything
Stuart was quick to understand our requirements and was able to recommend a cost-effective solution. The process was professional and efficient from start to finish. Each stage was explained thoroughly and our documents checked by the team, so we could get things right first time - we would not hesitate to go back to Acorn Business Finance for any future requirements.
A really positive experience
5 stars from start to finish. Stuart and his team were fantastic!
5 stars from start to finish
Stuart at Acorn was superb. Understood our fully requirements, engaged with us pro-actively throughout. Could not have been more helpful. Organised all the funding requirements we needed at excellent rates. Could not recommend enough.
Engaged with us pro-actively throughout
All the team have been extremely helpful and kept me in the loop with progress reports as we have gone along. I would definitely recommend Stuart and Cathy for their helpful attitude, nothing has been too much trouble during a time that has been stressful for our business.
Taken the stress away
Amazingly quick to get the deal done from start to finish, and to get the money into the bank. A breath of fresh air and the wonder why everyone else can't work like this. Thoroughly recommended.
Amazingly quick
I have dealt with Stuart and his team at Acorn Finance for a number of years now and they are very efficient, always keep you updated, and you receive a personal service. They understand our business needs. The CBILS Loan from initial enquiry to funds in the bank less than a week. I would highly recommend them.
Speedy Personable Service - Highly Recommend
Truly fantastic and dependable service. In such turbulent times and with the criteria for meeting CBILS loans incredibly high, having a dependable broker that is willing to spend the time to truly understand your business needs as well as having a deep-rooted understanding of ever-changing requirements from such a vast array of providers is invaluable. Highly recommended.
Truly fantastic and dependable service
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Get in touch

To discuss financing for your business, contact us either by phone 01242 395 507, email hello@acornbusinessfinance.co.uk or book a callback.

Please note, calls may be recorded for training and quality purposes.

  • +44 (0) 1242 395507
  • hello@acornbusinessfinance.co.uk
  • Suite 1.27, Clockwise Offices, Festival House, Jessop Avenue, Cheltenham, GL50 3SH
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Acorn Business Finance strives to provide clients with the highest level of service. If you feel that our service fails to meet your requirements and you would like report a complaint, get in touch via hello@acornbusinessfinance.co.uk

Acorn Business Finance is the trading name of SJT Corporate Finance Limited. SJT Corporate Finance is registered in England and Wales, number 10919713. Registered office, Festival House, Jessop Avenue, Cheltenham GL50 3SH. SJT Corporate Finance Limited is authorised and regulated by the Financial Conduct Authority, reference number 822913. We are a credit broker, not a lender. We work with a panel of lenders who may pay us a commission. This amount varies between lenders.

Eddie

Eddie

Eddie brings a wealth of experience and knowledge from the finance sector.
Since building up and successfully selling on his own vehicle leasing brokerage, he joined Acorn Business Finance 5 years ago as a consultant covering the North of the country. Based in South Cheshire, he is ideally located to assist SME clients
around the whole area. 

He enjoys building long term relationships with clients and helping them achieve their targets by providing creative funding solutions and watching their businesses grow. Outside of work Eddie enjoys escaping to North Wales to get wet and cold up various mountains, sampling some good food and beer once he gets down again, and spending time with his family – mainly chasing his 2 young sons around.