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Growth Guarantee Scheme

SWIG Finance is an accredited Growth Guarantee Scheme lender. Business Loans from £25,001 to £250,000 are designed to support access to finance for small businesses as they look to invest and grow.

About the 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.

Growth Guarantee Scheme-backed facilities are provided at the discretion of SWIG Finance. We are required to undertake our standard credit and fraud checks for all applicants.

Growth Guarantee Scheme Features:

– Up to £2m business group: The maximum amount of a facility provided under the scheme is generally £2m per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1m (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 is £25,001 for Term Loans.

– 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 (organisation) will vary and will depend on the specific lending proposal. SWIG Finance pricing will take into account the benefit of the Government guarantee;

– Personal Guarantees: Personal guarantees can be taken at SWIG Finance’s discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme;

– Guarantee is to the (organisation): 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 SWIG Finance: Growth Guarantee Scheme-backed facilities are provided at the discretion of SWIG Finance. SWIG Finance 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 isdeemed 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.

Business Guidance: 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.

Legal notice: 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

Is my Business eligible for the Growth Guarantee Scheme?

– 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: SWIG Finance 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.

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.

Business Loan characteristics

  • ✓ Loan value from £25,001 – £250,000
  • ✓ Finance for working capital or growth (e.g. equipment)
  • ✓ Tangible security is not required
  •  Terms & Conditions Apply
  •  
Security
– Fixed & floating debenture taken (ranking behind existing charge holders, if appropriate)
– Unsupported personal guarantees are typically required for business loans

Information required to apply for a business loan:

– Last 2 years’ full accounts (if available)
– Most recent management accounts
– Cashflow forecast for a minimum of 12 months
– Last 6 months business bank statements
– Credit Report for all directors

Apply for a Growth Guarantee Scheme loan now

Please complete the below enquiry form and a member of the team will be in touch.
Read more about our business loans requirements here.

Should you wish to apply for a loan then please complete the following questions:

Here at SWIG Finance Limited we take your privacy seriously and will only use your personal information to administer your application and to provide the products and services you have requested from us. Please tick the box below to indicate your consent to us processing your data in accordance with our privacy policy.

Frequently Asked Questions

You can see below the answers to our most frequently asked questions. If you have more questions, do not hesitate to contact us and we will be happy to help.

What is the Growth Guarantee Scheme?

The Growth Guarantee Scheme is designed to support access to finance for UK small businesses as they look to invest and grow.

Amount and Repayment Period

Here at SWIG Finance, we can fund loans from £25,001 to £250,000 repayable from 1 to 5 years. 

Is there a government-backed guarantee for the Growth Guarantee Scheme?

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.

Am I eligible for a Growth Guarantee Scheme Loan with SWIG Finance?

To be eligible for a loan: 

  • You must be 18 or over.
  • You must be a business with a clear plan for the purpose of the loan. 
  • The business must be able to demonstrate viability and growth potential.
  • The business must be based in the South West of England.

The following are not eligible under the Good Growth Scheme: Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers), Public sector bodies, State-funded primary and secondary schools.

What are the interest rates?

For a business loan of £25,001 to £250,000 repayable up to 5 years, the interest rate is 12% ABR. 

What can Growth Guarantee Scheme Loans be used for?

Growth Guarantee Scheme funding can be used for a range of purposes, including (but not limited to):

  • Working capital
  • Growth capital
  • Operational expenses
  • Recruitment or staff costs
  • Purchasing Equipment
  • Marketing
  • Business Acquisition

Is a Debenture required?

Yes, a debenture will be registered at Companies House, which will typically rank behind existing charge holders.

What are the risks of a Growth Guarantee Scheme loan?

There are risks involved with lending. For example, if you fail to make payments on time this can affect the business credit rating. If you have a business loan with SWIG Finance and you encounter any difficulties, please get in touch with your dedicated business manager who will support you in resolving the issues.

Will there be a credit check?

Credit checks are a standard part of determining whether you qualify for a business funding. At SWIG Finance, we undertake a credit check on the business and require business owners to supply their own personal credit reports. 

Please note, however, even if you do not have a perfect credit score, we may still be able to help you.

Can I apply for a Growth Guarantee Scheme loan if I have received other Covid-19 financial support?

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

What will we need from you?

Information we will need to assess your loan request:

  • Last 2 sets of full annual accounts, including detailed Profit & Loss Accounts
  • Management accounts for the period since the most recent year-end to date
  • Cashflow forecast for a minimum of 18 months, identifying the requirement for the business loan
  • Credit Report for all directors
  • Details of any agreed outputs e.g. number of jobs created or safeguarded.

Are there any other fees?

There is a 5% arrangement fee at outset, which can be added to the loan. If any payments are missed or late there may be additional fees. 

 

Does the business loan require a personal guarantee?

Unsupported personal guarantees are typically required for all unsecured business loans.

How do I apply for a Growth Guarantee Scheme loan?

To apply, visit our Business Loans page and click the ‘Apply Now’ button to be directed to the Enquiry Form.

Once you’ve submitted your application a member of the team will be in touch to take you through the next steps.