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What is the Growth Guarantee Scheme?

The Growth Guarantee Scheme launched in July 2024 and is designed to support access to finance for UK small businesses as they look to invest and grow. Businesses that took out a CBILS, CLBILS, BBLS or RLS facility are not prevented from accessing GGS, although in some cases it may reduce the amount a business can borrow. 

GGS aims to improve the terms on offer to borrowers. If we can offer a Momenta Finance business loan on better terms, we will do so. GGS-backed facilities are provided at our discretion and we are required to undertake our standard credit and fraud checks for all applicants.

What can our GGS loan be used for:

Refinance

Fuel business
growth

Manage working
capital

Acquire property
or land

Purchase assets
or machinery

Cover deposits

Fund staffing
and training

Invest in
marketing efforts

Fulfil many other
business requirements

GGS from Momenta Finance
Loan Amount£50,000 – £350,000 unsecured
£50,000 – £1.5m secured*
Loan TermUp to 72 months
SecurityLegal property charge
Personal GuaranteeYes
Over or early repayment termsZero

* The maximum amount of a facility, or facilities, provided under the scheme is £2m per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1m per business group for Northern Ireland Protocol borrowers.

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Eligibility Requirements:

  • Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group). 
  • UK-based: The borrower must be carrying out trading activity in the UK. 
  • Viability test: Momenta will establish that the borrower has a viable business proposition assessed according to its commercial lending criteria in place.
  • Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings. 
  • Purpose: the facility must be used to support trading in the UK and cannot be used to support certain export related activities. For borrowers within the Northern Ireland Protocol, there are restrictions as to what the facility may be used for if operating in agricultuare, aquaculture or fisheries.
  • Guarantee is to the lender: The scheme provides Momenta Finance with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.

Frequently asked questions

How do I apply for a Growth Guarantee facility?

You can apply for the Growth Guarantee Scheme facility using our online form available here. We’ll then assess your application and confirm whether we can offer you a Growth Guarantee Loan or a small business loan.

How much can I borrow and over what period of time with a Growth Guarantee Loan?

From £50,000 up to £350,000 unsecured, or up to £1.5m secured, over 6 years.

Is Personal Guarantee required?

We require a personal guarantee on all our loans, including those taken under the Growth Guarantee Scheme. 

Please note that Principal Private Residences cannot be taken as security under GGS.

How does the government subsidy work?

The assistance provided through GGS, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow. All borrowers in receipt of a subsidy from a publicly-funded programme should be provided with a written statement, confirming the level and type of aid received. 

Borrowers will need to provide written confirmation that receipt of the GGS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive.

All borrowers will need to answer some questions to determine whether they are inside or outside the scope of the Northern Ireland Protocol, to determine the relevant subsidy limit and hence the potential maximum amount they can borrow under GGS. A borrower in scope of the Northern Ireland Protocol may borrow up to £1 million per business group (across multiple lender facilities), unless such borrower operates in a sector where aid limits are reduced, in which case the maximum that can be borrowed is subject to a lower cap. These include agriculture and fisheries / aquaculture.

Please see https://www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme/subsidies for more information.

Who is not eligible under GGS?

The following are not eligible under GGS: 

  • Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers) 
  • Public sector bodies 
  • State-funded primary and secondary schools

Business Finance Support

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business and Trade. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

For more information, please visit: https://www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme

Why Choose
Momenta Finance

Small business loans are what we do, all day, every day. Our specialist team from account management through to credit understand businesses just like yours and want them to succeed.

We are a member of the Federation of Small Business (FSB), Consumer Credit Finance Association, Association of Alternative Finance Brokers and a Patron of the National Association of Commercial Finance Brokers (NACFB). We are also registered with the Financial Conduct Authority. This means we adhere to their codes of practice and are uncompromising, in our principles and practise ethical and responsible lending at all times.

Good to know

Momenta Finance, acts as both a lender and a broker. Where we act as a broker, we receive a commission from the lender. This does not impact the final amount that you pay for borrowing.

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Get started on funding your business today 

Reach out to us at 0800 848 8480 or contact@momentafinance.co.uk
to register as an Introducer, or request a quote to see how we can help you achieve your goals.

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