Growth Guarantee Scheme

Access to straightforward and flexible finance through the government’s Growth Guarantee Scheme.
 

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Supporting businesses with growth

Allica Bank is approved to offer finance through the Growth Guarantee Scheme (GGS). It’s a government initiative designed to support access to finance for UK small businesses as they look to invest and grow.

With Allica Bank, businesses can access asset finance (from £50,000 up to £1 million) and business loans (from £150,000 up to £2 million) through the scheme.

About the Growth Guarantee Scheme 

The successor 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 Allica Bank can offer a commercial loan on better terms, we will do so. 

Growth Guarantee Scheme backed loans are provided at the discretion of Allica Bank. We are required to undertake our standard credit and fraud checks for all applicants. 

How it works

  • The maximum term we can lend through the Growth Guarantee Scheme is six years.
  • The scheme provides Allica with a government backed guarantee against the outstanding balance of the facility.
  • We may request other security.
  • You always remain 100% liable for the debt.
  • Any previous subsidy received by a borrower, and its wider group, over any rolling fiscal three year period may reduce the amount a business can borrow.

Check scheme features

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Who can apply?

The Growth Guarantee Scheme is open to all SME businesses. This includes businesses who have previously had a Bounce Back Loan, or used the Coronavirus Business Interruption Loan Scheme or Recovery Loan Scheme facility.

To be successful, you must meet all of Allica’s usual eligibility criteria, including:

  • Be a UK-based business.
  • Be a limited company, LLP, partnership or sole trader, typically with at least two years of financial accounts.
  • Be a viable business proposition.
  • Not be a business in difficulty.

All applications will be subject to credit and fraud checks, as well as lending assessments (subject to status, terms and conditions apply).

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Who can apply?

The Growth Guarantee Scheme is open to all SME businesses. This includes businesses who have previously had a Bounce Back Loan, or used the Coronavirus Business Interruption Loan Scheme or Recovery Loan Scheme facility.

To be successful, you must meet all of Allica’s usual eligibility criteria, including:

  • Be a UK-based business.
  • Be a limited company, LLP, partnership or sole trader, typically with at least two years of financial accounts.
  • Be a viable business proposition.
  • Not be a business in difficulty.

All applications will be subject to credit and fraud checks, as well as lending assessments (subject to status, terms and conditions apply).

Eligibility criteria

  • Turnover limit: the scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where a business is 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: Allica Bank 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. 

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

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

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 and 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

 

General

What is a business in difficulty?

The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings.

What is a ‘subsidy’, and is GGS a subsidy?

The assistance provided through GGS, 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 fiscal period. Any previous subsidy may reduce the amount a business can borrow.
 
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.
 
Borrowers will need to provide written confirmation that receipt of the GGS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive.

How do you determine whether my business is within European State Aid rules?

All borrowers will need to answer some questions to determine whether they are inside or outside the scope of the European State Aid rules, to determine the relevant subsidy limit and hence the potential maximum amount they can borrow under GGS.

Can I have another GGS facility if I have an existing CBILS/ CLBILS/ BBLS/ RLS facility?

Yes. If your business has taken out a loan supported by the Bounce Back Loan Scheme (BBLS), Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), or Recovery Loan Scheme (RLS), before 30 June 2024, you can still access the GGS providing you meet the GGS eligibility criteria and that any additional lending is considered affordable by the lender.
 
If you accessed CBILS, CLBILS and/or RLS facilities before 30 June 2022, this will not count towards your cumulative subsidy limit in calculating the maximum amount you can borrow through GGS.
 
If you took out a BBLS, it may count towards your cumulative aid allowance when calculating the maximum amount you can access – you will have been informed by your BBLS lender at the time if your BBLS was provided under the EU’s de minimis regulations.
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How to apply 

Simply let your business development or relationship manager know that you’d like to apply through the scheme when you make your application.

 

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Allica Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (FRN: 821851). Registered office: 4th Floor, 164 Bishopsgate, London EC2M 4LX. Registered in England and Wales with company number 07706156.

Allica Bank savings accounts and business current account products are regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Allica Bank lending products are not regulated products.

Asset finance and growth finance services are provided by Allica Financial Services Limited trading as Allica Bank Asset Finance. Registered office: 4th Floor, 164 Bishopsgate, London EC2M 4LX. Incorporated under the laws of England and Wales with company number 12784979. Allica Financial Services Limited is not authorised or regulated by the Prudential Regulation Authority or the Financial Conduct Authority. The asset finance and growth finance products offered by Allica Bank Asset Finance are not regulated products.

Bridging Finance services are provided by Tuscan Capital Limited. Tuscan Capital Limited is not authorised or regulated by the PRA or FCA. Bridging Finance products offered by Tuscan Capital Limited are not regulated products.