British Business Bank’s Growth Guarantee Scheme to Support 11,000 Smaller Businesses by 2026

This post was originally published on The FinTech Times

The British Business Bank has launched the Growth Guarantee Scheme to help smaller UK businesses access necessary finance for investment and growth.

This scheme, succeeding the Recovery Loan Scheme, aims to support around 11,000 businesses between 1 July 2024 and 31 March 2026.

The scheme has so far accredited 41 lenders, with 20 ready to accept applications. It offers a range of finance types, including term loans, overdrafts, asset finance, invoice finance and asset-based lending. The maximum facility size is £2million per business group, with varying minimum amounts depending on the facility type. New lenders who wish to apply for accreditation under the scheme can now do so.

The scheme terms maintain continuity with the Recovery Loan Scheme, offering up to six years for term loans and asset finance, and up to three years for overdrafts, invoice finance, and asset-based lending. Businesses that previously accessed Covid-19 support loans can also apply, though their previous borrowing may affect their eligibility.

Interest rates and fees will vary by lender, and while personal guarantees may be required, principal private residences cannot be taken as security.

Reinald de Monchy, managing director, guarantee and wholesale solutions, British Business Bank, said: “We’re excited to launch the Growth Guarantee Scheme, which will

Read the rest of this post, which was originally published on The FinTech Times.

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