British Business Bank (BBB) announced that its Growth Guarantee Scheme has provided more than £250m ($316.61m) in funding to UK smaller businesses.
Succeeding the Recovery Loan Scheme in July, the initiative aims to enhance access to finance for businesses seeking to invest and grow.
Implemented by the British Business Bank on behalf of the Secretary of State for Business and Trade, the Growth Guarantee Scheme collaborates with an array of financial products and lenders, including overdrafts, term loans, asset finance, invoice finance, and asset-based lending.
The scheme involves 50 accredited lenders and has reached a range of businesses throughout the UK, particularly benefiting those outside of London and the South East.
The scheme’s impact is evident across various sectors, with the wholesale and retail industry receiving the highest proportion of facilities at 17%.
Manufacturing follows closely at 15% and construction at 12%, while professional and scientific sectors account for 9%.
Access the most comprehensive Company Profiles
on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Company Profile – free
sample
Your download email will arrive shortly
We are confident about the
unique
quality of our Company Profiles. However, we want you to make the most
beneficial
decision for your business, so we offer a free sample that you can download by
submitting the below form
By GlobalData
Furthermore, 96% of the funding has gone to businesses with less than 50 employees, supporting expansion, growth, asset purchases, capital expenses, startups, and working capital.
The scheme, which provides a 70% government-backed guarantee to lenders against the outstanding balance of the facility, is poised to assist around 11,000 smaller businesses from 1 July 2024 to 31 March 2026.
BBB products co-chief banking officer Reinald de Monchy said: “This is a fantastic achievement for the Growth Guarantee Scheme in such a short amount of time.
“Since its launch, we wanted to maintain the momentum we generated with the previous scheme and offer a diverse range of finance types across the UK. We hope to continue this into 2025 and support more smaller businesses as the scheme accredits more delivery partners.”
