The FSE Group is an accredited delivery partner for the Growth Guarantee Scheme (GGS) across the funds we manage in the East of England and Yorkshire and the Humber.
Through the East of England Regional Growth Loan Scheme we can support eligible businesses with loans ranging from £50k - £500k.
In the Yorkshire & the Humber through Finance Yorkshire Business Loans we can support eligible businesses with loans ranging from £25k - £250k.
About Growth Guarantee Scheme:
The successor scheme to the Recovery Loan Scheme, The Growth Guarantee Scheme (GGS) launched in July 2024 and is designed to support access to finance for UK small businesses as they look to invest and grow. The Growth Guarantee Scheme aims to improve the terms on offer to borrowers. If we can offer a commercial loan on better terms, we will do so. Growth Guarantee Scheme-backed facilities are provided at the discretion of The FSE Group. We are required to undertake our standard credit and fraud checks for all applicants.
The FSE Group Growth Guarantee Scheme Features:
GGS amounts available: East of England from £50k - £500k and in Yorkshire and the Humber £25k - £250k.
Term Length: Term loans up to 5 years.
Access to multiple schemes: Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2024 are not prevented from accessing Growth Guarantee Scheme, but borrowing under these schemes may reduce the maximum amount the borrower is eligible for.
Pricing: Interest rates and fees charged by The FSE Group will vary and will depend on the specific lending proposal. Our pricing will take into account the benefit of the Government guarantee.
Personal Guarantees: Personal guarantees can be taken at the lenders discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the scheme.
Guarantee is to the Lender: The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.
Decision-making delegated to The FSE Group: Growth Guarantee Scheme-backed facilities are provided at the discretion of The FSE Group and we are required to undertake our standard credit and fraud checks for all applicants.
The assistance provided through 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:
Turnover limit: The scheme is open to small 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 have a material part of their operations in the East of England or Yorkshire and the Humber.
Viability test: The FSE Group will 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.
Ineligible sectors: Please note that the following sectors are not eligible under GGS:
- Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
- Public sector bodies.
- State funded primary and secondary schools.
- Plus in conjunction with the underlying loan schemes - East of England Regional Growth Loan Scheme, Finance Yorkshire Business Loans, additional sectors may be ineligible.
Supporting Information Required for GGS Applications:
You will need to provide certain documents when you apply for an GGS-backed facility. These are likely to include:
- A full application form.
- Management accounts.
- Assets and liabilities statements.
- Historic accounts – last 3 years if trading that long.
- 24-month forecast, including cash flow, P&L and balance sheet.
- Trade debtors and creditors.
- The amount of any previous subsidy / state aid received.
Decision making on whether a business is eligible for GGS is fully delegated to the British Business Bank’s accredited GGS lenders.
The British Business Bank’s Business Guidance pages have a range of guidance and resources for businesses, including information on how to manage your cashflow and where to find independent advice.
The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business & Trade. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme
