British Business Bank Launches Growth Guarantee Scheme to Support Smaller Businesses
The British Business Bank Launches Growth Guarantee Scheme to Support Small Businesses
The British Business Bank has announced the launch of its Growth Guarantee Scheme, aimed at helping smaller businesses access finance to invest and grow. The scheme is expected to support around 11,000 smaller businesses between July 1, 2024, and March 31, 2026.
Reinald de Monchy, managing director of guarantee and wholesale solutions at the British Business Bank, expressed excitement about the launch, stating that the scheme will allow lenders to offer more finance to their customers. This, in turn, will help generate sustainable growth across the UK and provide a platform for smaller businesses to scale up or stay ahead.
Currently, 41 lenders have been accredited for the Growth Guarantee Scheme, with 20 lenders already open for applications. The accredited lenders will offer a variety of finance options to smaller businesses, including term loans, overdrafts, asset finance, invoice finance, and asset-based lending.
The scheme features up to £2 million per business group, a wide range of products, and access to multiple schemes. Personal guarantees may be required at the lender’s discretion, and there is a 70% government-backed guarantee against the outstanding balance of the facility after the normal recovery process.
Decision-making for Growth Guarantee Scheme-backed facilities will be delegated to the lender, providing flexibility in financing options for small businesses. Further lenders are currently going through the accreditation process and will be accredited in the coming weeks.
Overall, the Growth Guarantee Scheme aims to provide continuity and consistency for lenders and the business community, offering much-needed support for smaller businesses looking to invest and grow in the post-pandemic economy.