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- Up to £2 million per business group: the maximum amount of a facility provided under the scheme is generally £2 million per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1 million (or such other sum as notified from time to time by us to the lender in accordance with the relevant legal agreement(s)) per business group for Northern Ireland Protocol borrowers. Minimum facility sizes vary, starting at £1,000 for asset based lending and invoice finance, and £25,001 for term loans and overdrafts;
- Wide range of products: Growth Guarantee Scheme supports term loans, overdrafts, asset based lending and invoice finance facilities. Not all lenders will be able to offer all products;
- Term length: term loans and asset finance facilities are available from three months up to six years, with overdrafts and invoice finance available from three months up to three 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 Allica Bank will vary and will depend on the specific lending proposal. Our pricing will take into account the benefit of the government guarantee;
- Personal guarantees: can be taken at the discretion of Allica Bank, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the scheme;
- Guarantee is to Allica Bank: 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 Allica Bank: Growth Guarantee Scheme-backed facilities are provided at the discretion of Allica Bank. We are 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.
