What is GGS?

The Growth Guarantee Scheme (GGS) is designed to support access to finance for UK small businesses as they look to invest and grow. The scheme aims to provide greater certainty over credit risk, enabling InterBay Asset Finance to provide finance to more viable smaller businesses that they wouldn’t otherwise consider. If InterBay Asset Finance can offer a commercial loan on or better terms, we will do so. Growth guarantee scheme backed facilities are provided at our discretion, and we must carry out standard credit and fraud checks for all applicants.

Overview

• A UK Government guarantee scheme helping viable businesses access finance they couldn't get commercially, or only at a higher price.
• An extension and rename of the Recovery Loan Scheme Phase 3 (RLS Phase 3), with updated terms under the new Guarantee Agreement.
• The guarantee sits between Government and IBAF as the lender — it is not provided to the borrower.
• Borrowers can hold more than one GGS/RLS Phase 3 facility and may also have benefited from BBLS, CBILS, CLBILS or RLS 1/2 — but a Maximum Amount cap applies.

Liability

• The GGS guarantee does NOT remove the borrower's liability for repaying their GGS-supported facility, or reduce any personal guarantor's liability.
• If a borrower defaults, IBAF is entitled to recover the full amount outstanding from them — the guarantee doesn't change that.
• Any money IBAF receives from Government under the guarantee does not reduce what the borrower owes.
• Security - IBAF will take security where it's available, in line with our standard lending policy — subject to the restriction on taking security over a Principal Private Residence (PPS).
• Personal Guarantees - Personal guarantees may be used for GGS facilities at IBAF's discretion, in line with normal lending policy.

Growth Guarantee Scheme features

The assistance provided through the Growth Guarantee Scheme, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow. More information on subsidies is available here.

Eligibility restrictions (not an exhaustive list)

• Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group).
• UK-based: The borrower must be carrying out trading activity in the UK and, for most businesses, generating more than 50% of its income from trading activity.
• Viability test: GGS Accredited Lenders must consider that the borrower has a viable business proposition.
• Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings.
• Subsidy limits: Borrowers will need to provide written confirmation that receipt of the Growth Guarantee Scheme facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received.

The assistance provided through the Growth Guarantee Scheme, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow. More information on subsidies is available here.

Please note: the following are not eligible under Growth Guarantee Scheme:

• Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
• Public sector bodies
• State-funded primary and secondary schools
• Principle Business activity of primary extraction of coal, lignite, crude petroleum and natural gas, and certain support activities for petroleum and natural gas extraction

Eligibility Criteria

• Customer Group must be an SME with turnover of less than £45m.
• Customer must be located and headquartered / registered in Great Britain.
• Customer Group must not have received more than £2m GGS or RLS3-funded support since 1st July 2022.
• Customer Group must not have received more than £315k GGS subsidy during this and the last 2 fiscal years (1 April to 31 March).

What we need for an initial proposal

• Your Proposal Form, Completed Pre-Qualification Form / Turnover Information plus 3 months bank statements.

Advisory information

Borrowers will need to provide certain documents when they apply for a Growth Guarantee Scheme-backed facility. These are likely to include:

• Management accounts
• Business plan
• Historic accounts
• Details of assets
• Details of previous subsidy awards

Decision-making on whether a business is eligible for the Growth Guarantee Scheme is fully delegated to InterBay Asset Finance by the British Business Bank.