The short answer. Under the Growth Guarantee Scheme the government guarantees 70% of what a lender could lose, so lenders can say yes to SMEs with less security. You still owe 100% of the loan, and the lender still judges the application on its normal tests: whether the business is viable and whether the cash repays the loan. So you need the same business plan and business cash flow forecast as for any other loan, plus a short declaration about subsidy limits.
The scheme in brief
As at 6 November 2026, the British Business Bank's page sets out these terms. They change, so check the current figures before you apply.
| Term | What the scheme says |
|---|---|
| Guarantee | 70% to the lender, on what is left after its normal recovery. You remain 100% liable. |
| Size | Up to £2m per business group (£1m for Northern Ireland Protocol borrowers). At least £25,001 for term loans and overdrafts, and £1,000 for asset finance, invoice finance and asset-based lending. |
| Turnover | Up to £45m for the group, announced on 12 July 2026 to rise to £54m as lenders bring the change in. |
| Products | Term loans, overdrafts, asset finance, invoice finance and asset-based lending. Not every lender offers every product. |
| Length | Term loans and asset finance from three months to six years, announced to extend to ten years; overdrafts, invoice finance and asset-based lending from three months to three years. |
| Security | Personal guarantees at the lender's discretion. Your main home cannot be taken as security under the scheme. |
| Who can apply | UK businesses trading in the UK, generally with more than half their income from trading, that the lender judges viable and that are not in difficulty or insolvency proceedings. |
You apply to an accredited lender, such as a high-street or challenger bank or an asset finance provider, not to the British Business Bank.
What the lender will ask for
- Two years of filed accounts, and management accounts for the months since the year end.
- A business plan that says what the money is for, exactly how much is needed and why, and how it makes the business stronger. See what UK lenders check in a business plan.
- A monthly business cash flow forecast that includes the new loan, its repayments and the tax dates, and shows the lowest balance and the headroom. See what a bank looks for in a business cash flow forecast.
- A downside case: what happens to the repayments if sales fall or customers pay later.
- The subsidy declaration, confirming the facility keeps the business within its subsidy limits.
Where applications go wrong
The guarantee does not rescue a weak application. Lenders still decline where the cash does not cover the repayments, the credit file shows problems, or HMRC is owed money. The fixes are in why business loans get declined.
If you want to see your company the way the lender will before you apply, the business loan review reads up to five years of accounts, builds the 36-month business cash flow forecast and shows how much you could borrow.
Questions
Is the Growth Guarantee Scheme a government loan?
No. The loan comes from the lender, on its own terms and rates. The government guarantees part of the lender's loss, not your repayments.
Can a lender take my house as security?
Not your main home, under the scheme. A lender can still ask for a personal guarantee, at its discretion.
Do I need a business plan for it?
Usually yes, with a monthly business cash flow forecast, because the lender still has to judge whether the business can repay the loan.
Want the lender's view before you apply?
The business loan review shows how a bank will read your company, builds the 36-month business cash flow forecast and sets out your borrowing capacity. Fixed fee from £1,449.
See the business loan reviewGet a fixed quote