Growth Guarantee Scheme for Asset Finance
About the Growth Guarantee Scheme
The successor scheme to the Recovery Loan Scheme, The Growth Guarantee Scheme (GGS) launched in July 2024 and is designed to support access to finance for UK small businesses as they look to invest and grow.
Growth Guarantee Scheme-backed facilities are provided at the discretion of Time Finance. We are required to undertake our standard credit and fraud checks for all applicants.
Scheme Features
Up to £1m business group:
The maximum amount of a facility provided under the scheme is generally £1m per business group per business group for borrowers outside the scope of the Northern Ireland Protocol. Minimum facility sizes vary, starting at £1,000 for asset finance.
Term length:
Asset Finance facilities are available from 36 months to 5 years.
Access to multiple schemes:
Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2024 are not prevented from accessing Growth Guarantee Scheme, but borrowing under these schemes may reduce the maximum amount the borrower is eligible for;
Pricing:
Interest rates and fees charged by Time Finance will vary and will depend on the specific lending proposal. Time Finance pricing will take into account the benefit of the Government guarantee;
Personal Guarantees:
Personal guarantees can be taken at Time Finance’s discretion, in line with our normal commercial lending practices. Principle Private Residences cannot be taken as security within the scheme;
Guarantee is to Time Finance:
The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debit.
Decision-making delegated to Time Finance:
Growth Guarantee Scheme-backed facilities are provided at the discretion of Time Finance. Time Finance are required to undertake our standard credit and fraud checks for all applicants.
The assistance provided through the Growth Guarantee Scheme, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow. More information on subsidies is available here.
Eligibility Restrictions
- Turnover limit:
The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group);
- UK-based;
The borrower must be carrying out trading activity in the UK and, for most businesses, generating more than 50% of its income from trading activity;
- Viability test:
Time Finance must consider that the borrower has a viable business proposition;
- Business in difficulty:
The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings;
- Subsidy limits:
Borrowers will need to provide written confirmation that receipt of the Growth Guarantee Scheme facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received.
Please note, the following are not eligible under Growth Guarantee Scheme;
- Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
- Public sector bodies
- State-funded primary and secondary schools
To apply for Growth Guarantee Scheme
You will need to provide certain documents when you apply for a Growth Guarantee-backed facility. These are likely to include:
- Management Accounts
- Business plan
- Historic accounts
- Details of assets
- Details of previous subsidy awards
Decision-making on whether a business is eligible for the Growth Guarantee Scheme is fully delegated to Time Finance by the British Business Bank.
Business Guidance
The British Business Bank’s Business Guidance pages have a wide range of guidance and resource for businesses, including information on how to manage your cashflow and where to find independent advice.
Legal Notice
The Growth Guarantee Scheme is managed by British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business & Trade. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorized or regulated by the PRA or the FCA.
Visit www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme
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