British Business Bank launches Recovery Loan Scheme successor
The British Business Bank has launched the successor scheme to the Recovery Loan Scheme to continue to help smaller businesses access finance.
The Growth Guarantee Scheme came into effect at the start of this month and is set to finish on 31 March 2026.
Lenders will provide a wide range of finance types to smaller businesses, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.
70 per cent of the loan’s value is guaranteed by the government.
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The terms of the scheme are broadly unchanged from its predecessor, allowing loans of up to £2m per business.
Businesses that accessed finance under previous government-backed schemes during or after the pandemic are able to access the Growth Guarantee Scheme.
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The state development bank has already accredited 41 lenders. Following their accreditation, each lender needs to put in place the operations required to start lending under the scheme and will be listed on the British Business Bank website once they are ready to start receiving applications. 20 lenders have so far confirmed they are open for applications, with further lenders set to be accredited in the coming weeks.
“We’re excited to launch the Growth Guarantee Scheme, which will allow lenders to offer more finance to their customers,” said Reinald de Monchy (pictured), managing director, guarantee and wholesale solutions, British Business Bank.
“This will help to generate more sustainable growth across the UK and provide a springboard to many smaller businesses to scale up or stay ahead.”
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