11,000 SMEs across the UK could enjoy a boost to their growth through a new small business loan scheme. Securing finance can be a struggle for new or existing small businesses, so opportunities to access additional funding are always welcome.
More details have now been shared about the new Growth Guarantee Scheme, which will replace the Recovery Loan Scheme. Here’s a quick overview of what’s been announced:
- The Growth Guarantee Scheme will run from 1 July 2024 to 31 March 2026
- It’s being managed by the British Business Bank
- 41 accredited lenders have been confirmed
- 20 are already accepting applications
- Up to £2m is available per business group
- Loans and asset finance facilities will be available from three months up to six years
- Available to businesses with a turnover of up to £45 million
The key details and terms are expected to remain broadly the same as the Recovery Loan Scheme, to help ensure continuity and consistency for small business owners. The main options available include term loans, overdrafts, asset finance, invoice finance and asset-based lending.
If you’re a small business owner, and have already taken out a previous scheme, such as the Coronavirus Business Interruption Loan Scheme (CBILS) or Bounce Back Loan Scheme (BBLS) you can still access the Growth Guarantee Scheme. However, you may see the maximum amount you can apply for reduced. And as always, ahead of taking out a loan, it’s sensible to review your business finances with your accountant.
The aim of these schemes is to support and promote sustainable growth across the UK, enabling small business to scale up and remain competitive. With the Recovery Loan Scheme coming to an end in June it’s encouraging to see that new funding options have been swiftly put in place for small businesses in a bid to boost the British economy.