British Business Bank reaches £2.5bn Growth Guarantee Scheme milestone

The British Business Bank has reached a major milestone, delivering £2.5 billion in lending through its Growth Guarantee Scheme since the programme launched just over a year ago. Designed to support access to finance for smaller UK businesses, the scheme has seen 69% of lending directed to companies outside London and the South East, highlighting its strong regional impact.

The Growth Guarantee Scheme, launched on 1 July 2024, helps businesses secure funding through a range of accredited lenders offering term loans, overdrafts, asset finance, invoice finance, and asset-based lending. With over 50 delivery partners on board, the scheme supports loans of up to £2 million, offering a 70% government-backed guarantee to lenders while borrowers remain fully liable for the debt.

The North West has been one of the biggest beneficiaries to date, receiving over £270 million in lending. Other regions seeing over £200 million of support include the West Midlands, East of England, and Yorkshire & The Humber. Across the UK, a diverse range of sectors has received backing, including more than £368 million for manufacturing, £366 million for wholesale and retail, and £234 million for construction.

Notably, £633.69 million – 27% of total lending – has gone to firms less than five years old, underscoring the scheme’s role in supporting newer businesses with high growth potential.

Chancellor of the Exchequer Rachel Reeves said the scheme is already proving vital to the government’s growth agenda: “The Growth Guarantee Scheme has made a huge impact on our regional economies, helping smaller businesses across the UK to invest and grow, creating jobs and putting more money in people’s pockets.”

Gareth Thomas, Minister for Small Business, said: “As part of our Plan for Change we are committed to breaking down the barriers SMEs face when starting and scaling up, to create jobs and further boost the economy.

“This is an important milestone for the Growth Guarantee Scheme which plays a key role in helping us achieve this, by providing vital access to finance for smaller businesses right across the UK.”

Reinald de Monchy, Chief Banking Officer at the British Business Bank, credited the scheme’s momentum to the commitment of lenders and government support.

“It’s fantastic to see how much lending has been provided to firms under five years old, and the diversity of sectors supported,” he said. “The Government’s recent Spending Review will provide the scheme with funding until March 2030, and we are excited to see the additional impact it can generate for smaller businesses across the UK.”

Tina McKenzie, Policy Chair at the Federation of Small Businesses, said the record lending proves the scheme’s importance in helping small firms unlock opportunity and drive local growth.

“Small firms will be the engine of future economic growth, so getting them the finance they need is key. The Growth Guarantee Scheme reaches promising businesses which might otherwise not be able to turn their business plan into reality.”