Growth Guarantee Scheme Launches July 1st 2024
Three iterations of the Recovery Loan Scheme (RLS) will end on June 30th, to be replaced on July 1st 2024 by the new Growth Guarantee Scheme (GGS).
But will this signal a change in lending policy in the new British Business Bank-administered scheme?
What's changed?
In short, it remains almost unchanged from the last version of the Recovery Loan Scheme. Still, you may find the name change reflects the sentiment of lending support that the British Business Bank wanted to emphasise for UK trading businesses.
Most conversations with clients about the RLS scheme included an explanation that it had moved on from the original COVID support funding and that it was designed to support businesses in taking up opportunities and growing, helping the broader economy recover.
The British Business Bank acknowledged that this ‘recovery’ term may have been misinterpreted, hence the new name.
The main crux of the 70% government guarantee that supports the lender is that it allows positive credit decisions where cases may otherwise have been borderline or slightly out of criteria – and more loans should be approved with the comfort of the guarantee in place.
Here's what you need to know:
- The Growth Guarantee Scheme starts 1st July 2024 until 31st March 2026
- Eligible businesses must trade in the UK, with 50% + of their income from trading activities
- Applicant businesses must be solvent and not in difficulty
- Maximum funding is £2m per group
- Asset and Invoice Finance from £1,001+, and Term Loans / Overdrafts from £25,001+
- A government guarantee of 70% of the funding is provided to the funder – the borrower/s remain 100% liable
- Personal Guarantees may be taken
Get in touch to enquire about Growth Guarantee Scheme lenders will be available on Fiducia Commercial Network.
About Fiducia Commercial Network
Fiducia Commercial Network is a commercial finance ‘Appointed Representative’ network created to allow independent firms to provide commercial property finance and trading business finance options to their existing client base and network.
Joining the network provides opportunities for professional brokers to offer a full range of commercial finance solutions by acting as an Appointed Representative (AR) with the full support of the Fiducia Commercial Network team.
The Fiducia Commercial Network membership includes FCA authorisation and reporting, PI insurance, and NACFB membership, plus business, compliance, finance, system, and admin support from a company with over 20 years’ experience in commercial finance.
If you’d like to discuss joining Fiducia Commercial Network or you’d like to apply to become an Appointed Representative…
To discuss Fiducia Commercial Network or to apply to become an Appointed Representative email the team via by clicking this link.
For all media and marketing enquiries contact – pr@fiduciagroup.co.uk
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