Unlocking Growth with the Government Growth Scheme 2024

What is the Government Growth Scheme 2024?

The Government Growth Scheme (GGS) 2024 is a strategic initiative introduced by the UK government to bolster smaller businesses as they strive to grow and innovate. Managed by the British Business Bank, the scheme launched on 1 July 2024, offering businesses a lifeline in accessing finance that might otherwise be out of reach under normal commercial terms.

This scheme is particularly important for businesses looking to expand, manage cash flow, or invest in new opportunities but are constrained by limited access to finance. By providing a 70% government-backed guarantee to lenders, the scheme makes it easier for businesses to secure loans, overdrafts, and other forms of credit.

Key Features and Benefits:

Borrowing Limits: Businesses can secure up to £2 million through GGS, with the limit set at £1 million for companies within the Northern Ireland Protocol’s scope. The minimum borrowing starts at £1,000 for asset-based products and £25,001 for term loans and overdrafts.

Wide Range of Financial Products: The scheme supports various financial products, including term loans, overdrafts, asset finance, and invoice finance. This flexibility allows businesses to choose the financial tool that best suits their needs.

Favourable Terms: Lenders are encouraged to offer better terms through the scheme. If a commercial loan is available at more favourable terms without the government guarantee, lenders must offer that option instead.

Eligibility: The scheme is open to UK-based smaller businesses with a turnover of up to £45 million. Applicants must have a viable business proposition, not be in financial distress, and meet subsidy limits.

Flexible Usage: Funds from the GGS can be used for any legitimate business purpose, from managing day-to-day cash flow to making significant investments in growth. However, businesses must demonstrate their ability to manage additional debt responsibly.

How Can Your Business Benefit?

If you’re a small business looking to scale, the GGS offers a pathway to affordable finance, backed by the security of a government guarantee. This can make a significant difference, especially if you’re operating in a sector where access to traditional finance is challenging. By reducing the risk for lenders, the scheme allows them to offer more competitive rates and terms, making it easier for your business to secure the necessary funding.

Steps to Apply:

Check Eligibility: Ensure your business meets the scheme’s criteria, including turnover and UK-based trading requirements.

Choose a Lender: The British Business Bank has a list of accredited lenders who can provide GGS-backed products.

Prepare Your Application: Be ready to demonstrate the viability of your business and how you plan to use the funds.

Submit Your Application: Work with your chosen lender to apply for the GGS-backed product that suits your needs.

The Government Growth Scheme 2024 represents a significant opportunity for smaller businesses in the UK to access the finance needed for growth. Whether you’re looking to invest in new opportunities, manage your cash flow more effectively, or simply take your business to the next level, the GGS provides a robust framework to support your ambitions. As always, if you need guidance on how to navigate this scheme and make the most of the available financial products, the team at Helpbox is here to assist.