The British Business Bank’s Growth Guarantee Scheme has lent over £250m to smaller UK businesses since its launch.
The Growth Guarantee Scheme, launched by the British Business Bank in July 2024, has rapidly made a significant impact by lending over £250 million to small UK businesses. This development comes as part of a broader effort to enhance financial access for small enterprises eager to expand and drive economic growth. The scheme follows the successful Recovery Loan Scheme and aims to maintain the momentum created by its predecessor.
Working alongside various lenders, this forward-thinking initiative offers a diverse range of financial products, including term loans, overdrafts, asset finance, invoice finance, and asset-based lending. Such a variety ensures that businesses have flexibility in choosing financial solutions that best suit their specific needs and growth plans.
A substantial portion of the scheme’s funds, approximately two-thirds, have been channelled to companies located outside the London and South East regions, ensuring that economic development is not limited to the traditional business hubs. This distribution highlights the emphasis on supporting regional economies across the UK.
Of significance is the scheme’s focus on smaller enterprises, with 96% of the financial support directed towards firms employing fewer than 50 individuals. This prioritisation underscores the importance of boosting micro and small businesses as essential drivers of the UK economy.
Sector-wise, the wholesale and retail industry emerged as the largest recipient, securing 17% of the total lending. Manufacturing followed closely with 15%, while the construction and professional and scientific sectors received 12% and 9%, respectively. The allocation reflects the diverse needs and contributions of these industries to the overall economic landscape.
Notably, one-quarter of the total loans were realised through asset finance, demonstrating its increasing popularity among smaller businesses. Asset finance enables companies to secure funding while leveraging their existing assets, offering a practical solution for those requiring capital injection without substantial upfront costs.
Reinald de Monchy, co-chief banking officer, products, British Business Bank, remarked on the achievement, expressing hopes to extend the scheme’s reach in 2025. By accrediting more delivery partners, the bank aims to continue its support for smaller businesses.
Other stakeholders have also recognised the scheme’s success. Simon Goldie from the Finance & Leasing Association commended the scheme for energising investment and productivity across the economy. Martin McTague of the Federation of Small Businesses highlighted the vital role this initiative plays in assisting small businesses to scale and contribute to national economic recovery.
The Growth Guarantee Scheme exemplifies the British Business Bank’s commitment to empowering small businesses and fostering economic recovery.
