Growth Guarantee Scheme
The Growth Guarantee Scheme (GGS) is a Government-backed lending scheme and is the successor to the Recovery Loan Scheme (RLS), Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), and Bounce Back Loan Scheme (BBLS).
The Key Information
The scheme launched on 1st July 2024, and the current end date is set as 31st March 2026. Lenders can only access the scheme in situations where the customer’s application falls short of their core underwriting criteria.
Essentially, the scheme is designed to give the lender(s) the additional security needed to meet their criteria by providing a 70% Government-backed guarantee. The fees payable by the lender(s) to the Government for their guarantee tend to make interest rates and fees charged on GGS higher than their standard counterparts.
We don’t leave anything to computers and algorithms; every application is looked at by an experienced, human professional.
How the Growth Guarantee Scheme Works
Unlike the previously mentioned schemes, businesses cannot apply specifically for GGS. That means all lending applications must be submitted as normal. We have a simple three-step process to obtaining a business funding:
Step One
Application Process
Apply online or call us directly to speak to an account manager. Your application will be assessed by an internal underwriter who will narrow down our panel of over 120 lenders to those that suit your requirements, budget, and credit profile. If your application doesn’t meet the lenders’ core underwriting criteria, the application will be re-assessed under GGS.
Step two
Signing Agreement
Your acceptance will be issued in as little as four hours and your tailored agreement, including relevant GGS documentation, will be prepared ready for your to review and sign. You can choose either e-sign, visiting our offices, or we will arrange to come and see you at a location of your choice.
Step Three
Funds Released
The lender activates the agreement and payment is issued directly to your nominated business bank account in the case of a loan, or your chosen supplier’s bank account if your agreement is asset finance.
How Origin Finance Can Help
Origin has a team of experienced account managers who will talk you through the funding process. By understanding your business and its requirements, we’ll ensure the appropriate funding is in place at the correct time to facilitate your growth and expansion.
From start-ups and blue-chips to sole traders and PLCs, we’ve helped hundreds of businesses from almost every sector imaginable, and of all shapes and sizes. That included more than 200 Government-backed transactions.
Lenders can access GGS as long as the business meets all of the headline criteria. For GGS, a group turnover of up to £45m is required.
Growth Guarantee Scheme Key Points
Interest rates and fees charged by lenders on GGS are typically higher than their standard counterparts, as the lender’s pricing will take into account the benefit of the Government guarantee and a fee that is charged to the lender for the guarantee.
GGS provides the lender with a 70% Government-backed guarantee against the outstanding balance of the facility, and the borrower always remains 100% liable for the debt.
Maximum facility of £2m per business group (£1m for Northern Ireland Protocol businesses).
GGS-backed facilities are provided at the discretion of the lender and cannot be specifically applied for.
Businesses that took out a CBILS, CLBILS, BBLS, or RLS facility before 30th June 2024 can still access GGS.
The business must be actively trading in the UK and, for the most part, generating more than 50% of its income from trading activity.
Personal guarantees can be requested at the lender’s discretion, in line with their normal commercial lending practices.
The business must be viable and not in difficulty, including not being in relevant insolvency proceedings.
Government-back Lending Schemes FAQs
Am I eligible for Government-backed finance?
Are personal guarantees mandatory for the Growth Guarantee Scheme?
How do I know whether I’m eligible for business finance?
How much can I borrow from the Government?
What can the Growth Guarantee Scheme be used for?
What different finance solutions does Origin offer?
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