The Chancellor has announced an additional £500 million in lending capacity under the Growth Guarantee Scheme (GGS) to support smaller UK businesses dealing with cashflow difficulties linked to recent changes in global tariff rates.
Delivered through the British Business Bank (BBB) and around 50 accredited lenders, the scheme has already enabled £2.1 billion in finance via 13,447 facilities. The new funding will be channelled into term loans, overdrafts and similar financial products to support smaller businesses affected by global trade disruptions.
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The scheme offers facilities of up to £2 million per business group for firms outside the scope of the Northern Ireland Protocol, and up to £1 million for businesses within it. Each facility is backed by a 70% government guarantee, though borrowers remain fully liable for the debt.
Businesses must demonstrate they can afford the additional finance, which can be used for a range of purposes including working capital and cashflow management.
Lenders retain discretion over loan approvals and will apply their usual credit and fraud checks. Interest rates and fees will vary based on the specific terms offered by each lender and will reflect the benefit of the government-backed guarantee.
Reinald de Monchy, Co-Chief Banking Officer at the British Business Bank, stated that the scheme has historically supported smaller firms during periods of economic uncertainty and that the new funding would help maintain access to finance at a time of global market disruption.
The additional capacity follows the Autumn Budget 2024, in which the government confirmed more than £1 billion in funding for the British Business Bank’s initiatives through 2025/26. This included continued support for Start Up Loans, the ENABLE Build programme for smaller housebuilders, and equity programmes targeted at high-growth sectors such as life sciences.
Information about accredited lenders is available on the British Business Bank website. Businesses are encouraged to first contact their current finance provider or explore alternative lenders if necessary.
