The Growth Guarantee Scheme is being expanded to support an additional £2 billion of SME lending each year by 2028/29, taking annual scheme-backed lending from £1.35 billion to £3.35 billion. The government also announced that the turnover ceiling will rise from £45 million to £54 million. Eligible term loans and asset finance facilities of up to £1.1 million may be available for as long as 10 years.
However, the British Business Bank is still working with accredited lenders to introduce these enhancements. The scheme remains open under its existing terms, so applicants should confirm which rules their chosen lender is currently applying.
What the scheme is, and what it is not
The Growth Guarantee Scheme supports commercial finance, including term loans, overdrafts, asset finance, invoice finance and asset-based lending. Facilities are generally available up to £2 million per business group, although lower limits apply to some Northern Ireland borrowers and certain sectors.
The government guarantee covers 70% of the lender’s outstanding balance after the lender has completed its normal recovery process. You remain 100% responsible for repaying the debt. It is not a grant, and it does not guarantee approval.
Applications are made through an accredited lender rather than directly to the British Business Bank. Lenders conduct their standard credit and fraud checks and must consider the business viable and able to afford the borrowing. Personal guarantees may be requested at the lender’s discretion, although a principal private residence cannot be taken as security under the scheme.
The figures a lender may request
| What lenders look at | Why it matters | What a strong application shows |
|---|---|---|
| Recent filed accounts | Establishes trading history and profitability | Complete accounts filed on time, with reconciled figures |
| Management accounts | Shows performance since the last year end | Current monthly or quarterly results with explanations for major movements |
| Cash-flow forecast | Tests whether repayments remain affordable | Assumptions linked to contracts, pipeline and realistic costs |
| Existing borrowing | Shows total financial commitments | Clear balances, repayment dates, security and available headroom |
| Tax and payroll records | Indicates financial control | VAT, PAYE and Corporation Tax records kept current |
| Bank statements | Confirms actual cash movements | No unexplained transfers, returned payments or persistent overdraft pressure |
Where applications tend to come unstuck
Applications often weaken because the evidence is outdated or inconsistent. Regular monthly bookkeeping helps keep source records current, while QuickBooks for small businesses can support timely reconciliations. Proper management accounts allow a lender to compare current performance with filed accounts and forecasts.
Late VAT returns, missed Companies House and HMRC deadlines or inaccurate payroll services records may prompt further questions. Tax arrears do not necessarily prevent borrowing, but they should be disclosed and supported by a credible repayment arrangement.
Need Help With Your Accounts Or Tax?
Whether you need support with self assessment, VAT returns, payroll, bookkeeping, CIS, company accounts or corporation tax, Asmat & Co Accountants can provide clear, practical advice for your business or personal finances.
Directors should also explain unusual payments between personal and company accounts. The distinction between profit versus drawings matters for sole traders, while salary versus dividends affects a limited company’s reported profit, tax position and available funds.
A worked example
A Reading business with £900,000 turnover may seek £250,000 for equipment over 7 years. The monthly repayment cannot be stated accurately without knowing the lender’s interest rate and fees. The lender will test whether existing cash generation can cover repayments after tax, working-capital requirements and current debts.
Evidence of customer demand, equipment costs and realistic revenue gains will carry more weight than unsupported growth percentages. Longer terms can ease monthly cash flow, but they may increase the total interest paid. The term should reflect the asset’s useful life and the business’s repayment capacity.
Get your numbers ready before applying
The expansion increases lending capacity, but it does not reduce commercial lending standards. Whether you use limited company accountants, operate as a sole trader or are setting up a limited company, prepare current accounts, realistic forecasts, bank statements and details of existing commitments before approaching a lender.
Speak to our accountants in Slough or accountants in Reading to bring your figures up to date and prepare an application pack that can withstand commercial scrutiny.
Need Help With Your Accounts Or Tax?
Whether you need support with self assessment, VAT returns, payroll, bookkeeping, CIS, company accounts or corporation tax, Asmat & Co Accountants can provide clear, practical advice for your business or personal finances.
