The UK Government has injected an additional £500 million into the British Business Bank’s Growth Guarantee Scheme, expanding the programme’s lending capacity to support small and medium-sized enterprises (SMEs) grappling with the financial impact of global tariff changes.
The move brings the scheme’s total financing capacity to over £2.6 billion, delivered through around 50 accredited lenders. So far, it has facilitated £2.1 billion in finance across more than 13,000 facilities.
Targeted at viable SMEs facing cashflow pressures, the scheme offers government-backed guarantees on loans of up to £2 million for most UK businesses and up to £1 million for those operating under the Northern Ireland Protocol. After their recovery process, lenders receive a 70% guarantee on the outstanding balance, though borrowers remain fully liable for the debt.
The scheme supports various financial products including term loans and overdrafts, depending on the lender. While interest rates and fees vary, they reflect the benefit of the government guarantee and associated costs.
Funding can be used for various business needs, including managing working capital or offsetting disruptions linked to tariff shifts. Eligibility depends on lenders’ standard credit and fraud assessments, and applications must be made directly through the British Business Bank’s accredited lending partners.
