If you’ve scrolled Instagram or LinkedIn lately, you’ve probably seen ads calling the Government Growth Guarantee Scheme (GGS) the “new Bounce Back Loan” or a re-run of RLS/CBILS. That’s catchy marketing, but it’s wrong.
The Growth Guarantee Scheme, launched in July 2024 and managed by the British Business Bank, has already supported over £2.5 billion in loans to UK businesses. It isn’t new, it’s a continuation of the government’s structured guarantee framework that helps lenders keep credit flowing to viable SMEs through tighter credit conditions. The scheme gives participating lenders a 70% government guarantee on eligible facilities, allowing them to extend funding responsibly while maintaining normal affordability and credit checks. Borrowers remain fully liable for repayment, exactly as with any commercial facility.
It’s worth noting that a new Mortgage Guarantee Scheme (MGS) has recently been introduced, but this is an entirely separate initiative, focused on helping individuals secure high loan-to-value residential mortgages, not business funding. The similarity in naming has caused widespread confusion and given rise to misleading marketing, with some promoters suggesting there’s a new “bounce back” or “government giveaway” loan for businesses. In reality, the GGS has been live for more than a year and continues to underpin billions in SME lending across the UK.
At Finspire Finance, we broker GGS facilities across multiple accredited lenders. Our role is to cut through the noise, package your case properly, and place it with the right funder on competitive terms, without misrepresenting what the GGS actually is or how it works.
What the Growth Guarantee Scheme Actually Is
The Growth Guarantee Scheme (GGS) replaced the Recovery Loan Scheme (RLS) in July 2024 and will run until March 2026. It’s designed to help lenders support small and medium-sized enterprises by giving them a 70% government guarantee on eligible loans, overdrafts, asset finance, and invoice finance facilities.
For businesses, this means greater access to funding in a cautious lending climate, without changing your liability. You’re still responsible for the loan, but lenders can make decisions more confidently knowing part of the exposure is backed by government.
Key features:
Facility sizes between £25,001 and £2 million per business (higher for some Northern Ireland transactions).
Terms from three months to six years, depending on product.
Available to most UK-based businesses with viable models and no outstanding default on previous support schemes.
Delivered through accredited lenders, with the British Business Bank overseeing programme rules and compliance.
What the GGS Is Not
Despite what you may read online, the GGS is not:
A new Bounce Back Loan (BBL). Those were 100% government-guaranteed, required minimal checks, and carried a fixed 2.5% interest rate. GGS loans are commercially underwritten.
A CBILS or RLS fast-track. Those were emergency pandemic tools. GGS is a long-term framework supporting credit availability under normal regulation.
A grant or subsidy. The guarantee sits behind the lender; the borrower’s obligations remain unchanged.
An automatic approval route. Businesses must demonstrate affordability and sound cash-flow planning.
Why the “New Bounce Back” Label Is Misleading
The Bounce Back Loan Scheme was introduced in 2020 as an emergency measure during the pandemic. It prioritised speed and accessibility over long-term sustainability. The Growth Guarantee Scheme, by contrast, is about sustainable, responsible lending.
Under GGS, businesses must provide up-to-date accounts, demonstrate viability, and satisfy lender credit criteria. It’s a modern, market-led structure, not a quick-fix handout.
A Different Scheme Entirely: The 2025 Mortgage Guarantee Scheme (MGS)
The confusion between business and mortgage support schemes isn’t helped by the fact that the government also introduced the 2025 Mortgage Guarantee Scheme (MGS) in July 2025, around the same time as the GGS gained wider attention from marketeers.
However, the MGS is a consumer mortgage policy, not a business finance programme. It supports first-time buyers and home movers by allowing lenders to offer up to 95% loan-to-value mortgages on properties valued up to £600 000, with the UK Treasury guaranteeing up to 15% of lender losses in the event of default.
According to the HM Treasury 2025 Mortgage Guarantee Scheme Rules (v11):
The scheme is open only to individual borrowers, not limited companies.
Loans must be repayment mortgages, not buy-to-let or interest-only.
Borrowers must pass full affordability and credit checks under FCA MCOB standards.
Participating lenders must be formally enrolled with the Treasury.
In short, while both the MGS and GGS aim to promote lending, they address completely different markets, MGS for residential buyers, GGS for SMEs.
So, if you encounter ads touting a “new government loan for small businesses,” they’re probably misinterpreting the Mortgage Guarantee Scheme headlines. The Growth Guarantee Scheme remains the sole active government-backed business lending framework, and Finspire Finance has the capacity to arrange facilities under it.
GGS vs BBL vs CBILS vs RLS vs MGS
| Feature | Bounce Back Loan | CBILS | Recovery Loan Scheme | Growth Guarantee Scheme | Mortgage Guarantee Scheme |
|---|---|---|---|---|---|
|
Government Guarantee |
100% |
80% |
70% |
70% |
up to 15% |
|
Max Facility |
£50,000 |
£5,000,000 |
£2,000,000 |
£2,000,000 |
£600,000 property value cap |
|
Interest Rate |
2.5% |
Lender-set (capped) |
Lender-set |
Lender-set |
Lender-set |
|
Credit Checks |
Minimal |
Yes |
Yes |
Yes |
Full mortgage affordability & credit checks (MCOB) |
|
Borrower Liability |
Limited recourse |
Full |
Full |
Full |
Full |
|
Purpose |
Emergency liquidity |
Crisis recovery |
Transition support |
Business growth & working capital |
Homeownership support (residential mortgages only) |
|
Target Market |
Small businesses (pandemic) |
SMEs (COVID recovery) |
SMEs |
SMEs |
Individual homebuyers |
|
Managed By |
British Business Bank |
British Business Bank |
British Business Bank |
British Business Bank |
HM Treasury |
|
Live Period |
2020 – 2021 |
2020 – 2021 |
2021 – 2024 |
2024 – 2026 |
2025 – 2026 |
Who the GGS Helps
The GGS exists to boost lender confidence in viable businesses that might otherwise struggle to access credit. Typical beneficiaries include:
Manufacturers expanding production or buying machinery.
E-commerce retailers scaling fulfilment and stock.
Professional firms investing in technology or staff.
Property and construction companies bridging project cash flow.
Because the guarantee reduces lender risk, more lenders are competing for these deals, which means better choice for businesses.
Eligibility Checklist
Lenders typically require:
At least 12 months of trading history.
Management accounts and filed financials.
A clear use-of-funds plan.
No recent adverse credit events.
Applying Through Finspire
Discovery Call, we identify your funding needs, timing, and constraints.
Document Preparation, management accounts, forecasts, aged debtor/creditor lists.
Lender Mapping, we match your case to the right accredited GGS lenders.
Submission, Finspire presents your proposal and manages lender questions.
Completion, you compare all available offers, and complete the facility.
Because the guarantee sits between the lender and government, you don’t complete extra forms, the process mirrors a standard loan application.
Takeaways for SMEs
The GGS is a continuation of government-backed SME support, not a new Bounce Back Loan.
It has already facilitated over £2.5 billion in business lending.
The Mortgage Guarantee Scheme (MGS) is a different initiative entirely, focused on homebuyers.
Finspire Finance can help you access GGS-accredited lenders efficiently and transparently.
The Growth Guarantee Scheme marks a shift from emergency relief to sustainable growth. It supports businesses that can demonstrate real viability, and gives lenders confidence to keep credit flowing.
If you’re planning to expand, invest, or stabilise working capital, the GGS could be the most effective route to long-term funding.
No. The Bounce Back Loan Scheme (BBLS) offered 100 % government guarantees with a fixed 2.5% interest rate and very light checks during the pandemic. The Growth Guarantee Scheme (GGS) is fully underwritten by lenders, carries a 70 % guarantee for the lender (not the borrower), and operates under normal commercial lending rules.
No. The scheme has been live since July 2024 and has already supported over £2.5 billion in lending to UK SMEs through accredited lenders.
The Mortgage Guarantee Scheme is a separate HM Treasury initiative for homebuyers, not businesses. It enables lenders to offer up to 95 % loan-to-value residential mortgages on properties valued up to £600 000, with the government guaranteeing up to 15 % of the lender’s loss. It is not related to the GGS.
Eligible facilities include term loans, overdrafts, asset finance, and invoice finance, depending on the accredited lender’s offering.
Businesses can typically access facilities from £25 001 to £2 million, subject to lender assessment and eligibility. Some variations apply in Northern Ireland.
Yes. The GGS supports lenders, not borrowers. Lenders must carry out full due diligence, affordability, and credit checks in line with FCA requirements.
The British Business Bank administers the GGS on behalf of the UK Government. It accredits participating lenders, oversees compliance, and ensures consistent programme rules.
Some lenders may consider early-stage businesses case-by-case, but most require at least 12 months of trading history and evidence of a viable business model.
Yes. The GGS replaced the Recovery Loan Scheme in July 2024 and will run until March 2026. It continues the same guarantee framework to maintain access to finance for SMEs.
