The Rt Hon Jeremy Hunt announced during his Spring 2024 budget that the Government would be extending its support to embattled SMEs by launching the Growth Guarantee Scheme.

This scheme replaces the somewhat controversial, three time extended Recovery Loan Scheme ending on 30th June 2024.

It is expected that over 11,000 business will benefit from this scheme until its end in March 2026.

What will the  benefits be?

• The government has agreed to guarantee 70% of advances to accredited lenders
• Term loans and overdrafts will be available between £25,001 and £2million per business
• Invoice finance and asset finance will be available between £1,000 and £2million per business
• Up to six year terms for asset finance and and term loans
• Up to three year terms for invoice finance
  No minimum turnover
• No minimum trading history
• You can still apply even if you already have CBILS or Bounce Back Loans

Existing CIBILS, CLBILS or Bounce Back Loans?

• No problem. Your business can still apply for the Recovery Loan Scheme (RLS) even if you have any of the previously Government backed scheme facilities in place. The maximum you are able to borrow will be determined by the lender’s criteria and eligibility of the scheme

How will the Government Guarantee work?

• The Government offers an 70% guarantee to participating lenders in the scheme.
• This guarantee gives participating lenders a greater confidence to lend to businesses previously affected by the fallout of the Covid-19 pandemic.
• Lenders may now require a personal guarantee from the borrower, in line with standard commercial practice.
• It is important to note, however, that as the borrower, you are still 100% liable for the debt

Full details to follow.