The British Business Bank has announced today that it has reached the landmark milestone of £2.5bn of lending under its Growth Guarantee Scheme, since its launch one year ago.
Designed to improve access to finance for smaller UK businesses, the scheme has supported nearly 500 businesses in Wales, totalling almost £83 million in lending.
Nationally, 69% of the funds have gone to businesses outside London and the South East, highlighting the scheme’s role in promoting regional growth. In Wales, the 497 supported businesses translate to 25.74 facilities per 10,000 SMEs, underlining strong uptake among the Welsh business community.
The Growth Guarantee Scheme is designed to support access to finance for UK smaller businesses as they look to invest and grow. The Growth Guarantee Scheme launched on 1 July 2024, with a wide range of products supported by a broad variety of accredited lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.
The Growth Guarantee Scheme can support facility sizes of up to £2m and provides the lender with a 70% government-backed guarantee. The borrower always remains 100% liable for the debt.
There has been a wide range of industry sectors supported across the UK through the scheme. This includes over £368m for manufacturing, over £366m to wholesale and retail, and over £234m to the construction sector.
In April, the Chancellor announced that the scheme would provide approximately £500m of additional lending capacity in response to possible cashflow issues due to changes in global tariff rates.
Gareth Thomas, Minister for small business, said: “As part of our Plan for Change we are committed to breaking down the barriers SMEs face when starting and scaling up, to create jobs and further boost the economy.
“This is an important milestone for the Growth Guarantee Scheme which plays a key role in helping us achieve this, by providing vital access to finance for smaller businesses right across the UK.”
Reinald de Monchy, Chief Banking Officer, British Business Bank said: “This milestone is a demonstration of the important work done by the 50+ delivery partners who have signed up to the Growth Guarantee Scheme, since its launch in July 2024. In particular, it is fantastic to see how much lending has been provided to firms under five years old, and the diversity of sectors supported.
“The Government’s recent Spending Review will provide the scheme with funding until March 2030, and we are excited to see the additional impact it can generate for smaller businesses across the UK.”
Up to £2m per business group: The maximum amount of a facility provided under the scheme is generally up to £2m (depending on any previous relevant subsidies or whether the guarantor has notified the lender of any such other sum in accordance with the GGS guarantee agreement) per business group for borrowers outside the scope of the Northern Ireland Protocol, and generally up to £1m (depending on whether any particular industries with lower limits are involved, whether any previous relevant subsidies or whether the guarantor has notified the lender of any such other sum in accordance with the GGS guarantee agreement) per business group for borrowers inside the scope of the Northern Ireland Protocol.
