Government's Growth Guarantee Scheme supports £250m in small business funding
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Posted: Thu 21st Nov 2024
The British Business Bank's Growth Guarantee Scheme has supported more than £250m of finance for smaller businesses, since it replaced the Recovery Loan Scheme in July 2024.
Aimed at increasing access to finance for smaller businesses, the scheme covers a range of financial products from 50 lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.
Approximately two thirds of facilities, for which the lender receives a 70% government-backed guarantee against the outstanding balance, have been provided to businesses outside of London and the South East.
Firms in the wholesale and retail sector have received the highest proportion of facilities, at 17% of the total. Manufacturers have been provided with 15% of facilities, while construction, and the professional and scientific sector account for 12% and 9% respectively.
A quarter of the lending has been provided under asset finance, with 96% of the total funding allocated to businesses with fewer than 50 employees.
The Growth Guarantee Scheme runs until March 2026 and is expected to support around 11,000 smaller businesses.
In the Autumn Budget, the government said £1bn will be provided to the British Business Bank in 2024-25 and 2025-26 to "enhance access to finance for small businesses". This includes over £250m each year for the Growth Guarantee Scheme and Start Up Loans.
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