Lender guide
Using the Growth Guarantee Scheme to buy a business
The Growth Guarantee Scheme (GGS) is a government-backed scheme that helps accredited lenders fund smaller UK businesses, for any legitimate business purpose. For buyers, it can make a lender more willing to fund a deal it might otherwise turn down. We can help you find accredited lenders that use it for business purchases.
At a glance
Per the British Business Bank's website, checked 5 November 2026
- What it is: a 70% government-backed guarantee given to the lender, not to you. You stay liable for 100% of the debt.
- How much: facilities up to £2 million per business group; term loans start from £25,001.
- How long: term loans up to six years. The government announced in July 2026 that this will extend to ten years, and lenders are putting this in place.
- Who qualifies: UK businesses with turnover up to £45 million, rising to £54 million under the same July 2026 changes.
- Security: lenders may ask for personal guarantees, but can't take your main home as security under the scheme.
- Who decides: the accredited lender, using its normal credit checks.
How the scheme works
The British Business Bank runs the scheme for the government. It doesn't lend directly. Instead, it gives accredited lenders a guarantee covering 70% of the outstanding balance if a loan goes wrong and the lender has completed its normal recovery process.
That guarantee lowers the lender's risk, so it can fund viable businesses it might otherwise decline. The scheme covers term loans, overdrafts, asset finance, invoice finance and asset-based lending, though not every lender offers every product.
Can you use it to buy a business?
The scheme can be used for any legitimate business purpose, which can include buying a business, as long as the borrowing is affordable. Each lender decides whether to use the scheme for a particular deal.
One point to raise early: the borrowing business must be trading in the UK and, for most businesses, earn more than half its income from trading. How your purchase is structured, for example whether a new company is set up to buy the target, can affect this. We'll check it with lenders at the start.
Who qualifies
- A UK business, trading in the UK
- Turnover up to £45 million on a group basis (£54 million once the July 2026 changes are in place)
- A viable business proposition, in the lender's view
- Not a business in difficulty or in insolvency proceedings
- Within the subsidy limits: GGS counts as a subsidy, and earlier subsidies can reduce how much you can borrow
Pros and cons
Pros
- Helps lenders say yes to viable deals they might otherwise decline
- Facilities up to £2 million cover many smaller business purchases
- Your main home can't be taken as security under the scheme
- Available through a wide range of accredited banks and lenders
Cons
- You remain fully liable for the debt; the guarantee protects the lender
- The £2 million cap rules it out for larger deals on its own
- Personal guarantees may still be required
- Rates and fees vary by lender and are not set by the scheme
Applying through iLendi vs going direct
You can approach an accredited lender yourself, but each lender has its own appetite for business purchases and its own view of the scheme. We know which accredited lenders fund deals like yours, present your purchase in the way lenders look for, and handle the process through to completion. There's no fee to you; we're paid by the lender.
Frequently asked questions
Is the Growth Guarantee Scheme a government loan?
No. The loan comes from an accredited lender. The government guarantee covers part of the lender's loss if the loan isn't repaid, and you remain fully liable.
How much can I borrow under the scheme?
Up to £2 million per business group. Northern Ireland businesses in scope of the Windsor Framework can generally borrow up to £1 million. The amount you're offered depends on what's affordable for the business.
Will I need a personal guarantee?
Possibly. Lenders can ask for personal guarantees in line with their normal lending, but they can't take your main home as security under the scheme.
Is the scheme still open?
Yes. The British Business Bank lists it as open for applications, and the government announced extra capacity for it in July 2026.
Which lenders offer it?
Only lenders accredited by the British Business Bank, which publishes the current list. We can tell you which of them fund business purchases.
Tell us about your deal
Tell us a little about the business you're looking to buy. We'll review your requirements and get back to you.
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Information about the Growth Guarantee Scheme is taken from the British Business Bank's website, checked on 5 November 2026. Scheme terms can change, so always confirm details before you apply. This guide is general information, not financial advice. All finance is subject to status.
Sources: British Business Bank, Growth Guarantee Scheme