Growth Guarantee Scheme Features
Up to £2m per business group:
The maximum amount for a facility provided under the scheme is generally £2m per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1m per business group for Northern Ireland Protocol borrowers. 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:
The Growth Guarantee Scheme 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 overdrafts, invoice finance and asset-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 2022 are not prevented from accessing the Growth Guarantee Scheme, but borrowing under some of 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. BCRS Business Loans pricing will take into account the benefit of the Government guarantee and a fee that is charged to the lender for the guarantee.
– Personal Guarantees:
Personal guarantees can be taken at BCRS Business Loans discretion, in line with our normal commercial lending practices. Taking security over Principal Private Residences is strictly prohibited within the Scheme though.
– Guarantee is to the Accredited Lender:
The scheme provides [organisation] 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 GGS Accredited Lender:
Growth Guarantee Scheme-backed facilities are provided at the discretion of [organisation]. GGS Accredited Lenders are required to undertake standard credit and fraud checks for all applicants.
The assistance provided through the Growth Guarantee Scheme, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow. More information on subsidies is available here.
