BBB’s Growth Guarantee Scheme unlocks £200m for Scottish businesses

The British Business Bank has reached a major milestone in Scotland, with its Growth Guarantee Scheme (GGS) unlocking more than £200 million of finance for smaller businesses across the country since its launch in July 2024.

A total of 1,283 Scottish businesses have secured funding through the scheme, delivered by 32 accredited lenders, including several independent Scottish finance providers. The funding has supported business investment, expansion and job creation across a broad range of sectors and regions.

New data released by the British Business Bank reveals that West Central Scotland has been the most active region, securing £65.3 million of funding across 367 loans. East Central Scotland followed with £42.2 million, while Southern Scotland received £32.2 million.

At a local level, Glasgow City topped the rankings with £33.8 million of lending, ahead of the City of Edinburgh at £20.4 million. Aberdeen City and Aberdeenshire secured £18.5 million, while the Highlands and Islands attracted £16 million. Inverclyde, East Renfrewshire and Renfrewshire completed the top five localities with £15.2 million in funding.

The figures suggest strong demand for growth finance across both urban and rural parts of Scotland.

Analysis of the sectors receiving the most funding shows wholesale and retail trade, including motor vehicle repair businesses, attracted the highest level of support at £30.9 million. Administrative and support services followed with £23.3 million, ahead of manufacturing (£20.5 million), real estate (£17.9 million) and construction (£17.8 million).

The data also provides insight into how businesses are using the finance. The largest share of funding, £59.9 million, has been used for purchasing or hiring equipment and machinery. A further £46.3 million supported business expansion within the UK, while £37.5 million was used for general working capital requirements.

“The British Business Bank’s Growth Guarantee Scheme unlocking £200m for small businesses in Scotland is a significant milestone and a real demonstration of the UK Government’s commitment to supporting Scottish enterprise.

“From the Highlands to the Central Belt and Scottish borders, businesses across Scotland are accessing the finance they need to grow, create jobs and boost our economy. This funding backs Scottish ambition and helps drive economic growth to benefit communities across the country.”

“This is an important milestone, demonstrating this Government’s commitment to improving access to finance for smaller businesses right across Scotland. By unlocking vital funding, we are ensuring that Scotland’s most ambitious and innovative firms have the finance they need to invest and grow, creating jobs, boosting their local economies and raising living standards.”

“Reaching this £200m lending milestone for the Growth Guarantee Scheme in Scotland is a significant achievement. It is also a clear sign of the strength and ambition of Scotland’s smaller businesses and our delivery partners in Scotland.

“This funding is helping Scottish firms invest, innovate and grow, and we’re proud to see the scheme making such a tangible difference across the country.”

One business benefiting from the scheme is Cross Group Aberfeldy, a Perthshire-based construction company that has grown from a start-up established in 2018 with “two diggers and a dream” into a business employing 40 staff across four divisions. The company used Growth Guarantee Scheme funding provided through Simply Asset Finance to acquire new equipment and diversify its operations.

Kevin Cross, Managing Director of Cross Group Aberfeldy, said the funding had enabled the business to invest confidently while working with a lender that understood the needs of SMEs operating in rural communities.

The Growth Guarantee Scheme provides lenders with a 70% government-backed guarantee, supporting access to finance for smaller businesses through products including term loans, overdrafts, asset finance, invoice finance and asset-based lending. Borrowers remain fully liable for the debt, with lenders expected to offer conventional commercial facilities where these are available on better terms.