Growth Guarantee Scheme: which lenders offer it and how to apply

The Growth Guarantee Scheme is run by the British Business Bank and is the live successor to the closed Recovery Loan Scheme. Accredited lenders can offer term loans, asset finance, invoice finance and revolving credit with a 70% government guarantee to the lender, which lowers their risk so more applications get approved. You apply through an accredited lender or a broker, not the British Business Bank directly. This page compares which lenders we cover, and shows the routes for sole traders and thin-file applicants that high-street banks often turn away.

Disambiguation: this page covers the Growth Guarantee Scheme (GGS), the British Business Bank successor to the Recovery Loan Scheme. It is not the older Coronavirus Business Interruption Loan or Bounce Back Loan schemes, and it is not a direct government loan. The British Business Bank guarantees the lender, it does not lend to you.

The scheme at a glance

Scheme operator: British Business Bank (08616013)
Scheme period: 1 July 2024 to 31 March 2030
Replaces: Recovery Loan Scheme (closed)
Maximum facility: £2 million per business group
Turnover ceiling: £45 million per year
Government guarantee: 70% to the accredited lender
Borrower liability: 100%, including any personal guarantee
Eligible structures: Ltd, LLP, partnership, sole trader, not-for-profit
How to apply: Through an accredited lender or broker

Accredited lenders we cover

The lenders below appear on the British Business Bank accredited-lender register and are reviewed on this site with their real Companies House and rating data. The register changes as lenders are accredited or drop out, so confirm current status on the British Business Bank live accredited-lender list before you apply. We do not publish an accreditation flag of our own, because scheme status can change between reviews.

1. Funding Circle Non-bank route 4.3/5

Term loan · £10k to £500k · founded 2010 · CRN 07123069 · accepts unincorporated

Non-bank term lender, GGS-accredited. Soft-search quote, decisions in days, and a panel structure that accepts unincorporated applicants, not Ltd companies only.

Typical rate: 6.9% to 26.9% APR. Decision: 1 to 3 business days.
Read full Funding Circle review →
2. Allica Bank 4.4/5

SME term loan + commercial mortgage · £150k to £5m · founded 2019 · CRN 11470391 · Ltd only

PRA-regulated challenger bank on the scheme for established limited companies wanting larger term and asset-backed facilities.

Typical rate: From 7.99% APR. Decision: 5 to 10 business days.
Read full Allica Bank review →
3. Aldermore 4.1/5

Asset finance, invoice finance, commercial mortgages · £25k to £5m · founded 2009 · CRN 00947662 · Ltd only

Accredited for asset finance under the scheme. Strong on plant, vehicles and equipment where the asset is the security.

Typical rate: From 7.5% APR equivalent. Decision: 5 to 10 business days.
Read full Aldermore review →
4. Time Finance Non-bank route 4.0/5

Asset finance, invoice finance, vehicle finance · £10k to £2m · founded 2011 · accepts unincorporated

Independent, multi-product lender on the scheme covering asset finance and invoice finance for a broad range of structures.

Typical rate: Bespoke. Decision: 2 to 5 business days.
Read full Time Finance review →
5. Just Cashflow 0.0/5

Revolving credit / cashflow facility · £10k to £500k · founded 2014 · CRN 08508165 · Ltd only

Specialist working-capital and revolving facility provider engaged with the scheme for established trading companies.

Typical rate: 0.5% to 2.5% per month on drawn balance. Decision: 24 to 72 hours.
Read full Just Cashflow review →
6. ThinCats 4.0/5

Mid-market SME term loans (now part of Shawbrook Group) · £1m to £15m · founded 2011 · Ltd only

Mid-market term lender on the scheme for larger, cash-generative SMEs seeking growth and acquisition capital.

Typical rate: Bespoke, quoted at offer. Decision: 2 to 6 weeks.
Read full ThinCats review →
7. Skipton Business Finance Non-bank route 4.1/5

Invoice finance (factoring + invoice discounting) · £25k to £5m · founded 2001 · CRN 04171724 · accepts unincorporated

Invoice finance specialist on the scheme. Funds against the debtor book rather than relying on a fixed-asset charge.

Typical rate: From around 1.5% above base on advanced funds. Decision: 5 to 10 business days.
Read full Skipton Business Finance review →

Most UK high-street banks (Barclays, Lloyds, NatWest, HSBC, Santander) are also accredited and usually offer the scheme through your existing relationship manager rather than as a standalone product. We review those banks too; see all lender reviews.

The sole-trader and unincorporated route

The scheme rules allow sole traders, but in practice many accredited lenders only take limited companies. That is where applications from unincorporated businesses stall. The workaround is to apply to a non-bank accredited lender that accepts sole traders and partnerships, rather than reapplying to a bank that has already declined on structure.

The lenders flagged as a non-bank route above accept unincorporated applicants. Our broker panel covers these structures, so a sole trader or partnership can be matched to a lender whose criteria fit rather than guessing. This is the practical difference between this page and a pure eligibility explainer: we route the application, not just describe the rules.

If your business is a limited company, LLP or partnership of four or more and you want the scheme mechanics and eligibility detail in depth, our sister site FundBiz publishes a full reference page: Growth Guarantee Scheme eligibility and lenders.

When the scheme is the right route

A bank declined on risk and the guarantee is what gets the application over the line.
You are a limited company, LLP, partnership or sole trader with a viable, UK-trading business.
Turnover is under the £45 million ceiling and the facility you need is up to £2 million.
You want term, asset, invoice or revolving finance, and the lender offers that product under the scheme.

When it is not

You already qualify for cheaper unsecured lending without a guarantee. Compare first.
You want growth capital that is not debt. See our loan versus equity guide.
The purpose is purely a property purchase, which is a commercial mortgage rather than a scheme term loan.
You have an unresolved CCJ or recent default that the lender credit policy will refuse regardless of the guarantee. The scheme is a guarantee structure, not a relaxation of credit standards.

Compare and apply

Best Business Loans is an editorial site. We do not lend and we do not approve applications. To be matched to accredited lenders whose criteria fit your structure and credit profile, including sole-trader routes, use our enquiry form. There is no guarantee of approval and any decision rests with the lender.

Our /get-quotes/ form for broker matching across the panel
After a decline if a bank has already turned you down
All lender reviews with criteria, rates and Companies House data

Frequently asked questions

Is the Growth Guarantee Scheme a government loan?

No. The British Business Bank does not lend to you. It guarantees 70% of the facility to an accredited lender, which reduces the lender risk so more applications can be approved. You still borrow from and repay the lender on commercial terms.

Did the Growth Guarantee Scheme replace the Recovery Loan Scheme?

Yes. The Growth Guarantee Scheme opened on 1 July 2024 as the successor to the closed Recovery Loan Scheme. It was extended in the October 2024 Autumn Budget to 31 March 2030, with additional capacity added to the British Business Bank.

Can a sole trader use the Growth Guarantee Scheme?

Yes. The scheme rules cover Ltd companies, LLPs, partnerships, sole traders and not-for-profits. Some accredited lenders only take limited companies, so the route for an unincorporated business is to apply to a non-bank accredited lender that accepts sole traders, or to use a broker panel that covers those structures.

Do I still give a personal guarantee under the scheme?

Often yes. The 70% guarantee protects the lender, not you. Many accredited lenders still require a director personal guarantee on top of the scheme guarantee, and you remain liable for the full debt. See our personal guarantee guide before signing.

What size facility can I get and what does it cost?

Facilities run up to £2 million per business group across term loans, asset finance, invoice finance and revolving credit, for businesses with turnover up to £45 million. The guarantee feeds through to broader access and lender pricing rather than a fixed advertised discount, so compare offers.

How do I apply for a Growth Guarantee Scheme facility?

You apply through an accredited lender or a broker, never directly to the British Business Bank. Compare the accredited lenders below first, then check the British Business Bank live accredited-lender list to confirm current status, then submit to the lender that fits your structure and credit profile.

Where to read next

Government business loan schemes overview
Business loans with no personal guarantee
Business loans in the first year of trading
Business loans UK 2026 overview
FundBiz: Growth Guarantee Scheme eligibility reference (for incorporated businesses)

Reviewed by Oliver Mackman, Director, Best Business Loans Ltd (16833937). Scheme facts sourced from the British Business Bank Growth Guarantee Scheme pages. Last reviewed: 2026-05-27.