Running a business in today’s economy isn’t easy. From changing global tariffs to shifting customer demands, staying ahead often means having the right financial support behind you.
That’s where the Growth Guarantee Scheme by Bluestone comes in. With Bluestone as your trusted finance partner, accessing it could be easier than you think.
What is the Growth Guarantee Scheme?
The Growth Guarantee Scheme is intended to help small and medium-sized businesses to access the finance they need to grow. It was launched on July 1st 2024 and will run until 21st March 2026.
The Growth Guarantee Scheme replaces the Recovery Loan Scheme (RLS) which ended on 30th June 2024.
And there’s even more good news: in April 2025, the Chancellor announced an extra £500 million in lending capacity to support even more businesses, especially those feeling the pinch from global tariff changes.
And there’s even more good news, on the 13th April 2025, the Chancellor announced the Growth Guarantee Scheme will provide approximately £500m of additional lending capacity to help more smaller businesses across the UK. The extra funding is aimed at smaller businesses that may need support with cashflow issues due to changes in global tariff rates.
Businesses can use the finance for any legitimate business purpose, including managing cashflow or working capital requirements due to disruption caused by changes to global tariffs.
How does the Growth Guarantee Scheme help UK businesses?
The Growth Guarantee Scheme offers a 70% Government-backed guarantee on finance taken out by SMEs.
The scheme helps UK businesses to access the financing they need. This might include working capital or investment to stabilise their operations or invest in growth opportunities.
Which types of finance are backed by the Growth Guarantee Scheme?
The scheme will cover lenders offering loans, asset finance and invoice finance in amounts up to £2m. There are approximately 60 lenders eligible to lend under RLS so the expectation is that most/all of these will continue lend under the Growth Guarantee Scheme.
Minimum facility sizes vary from £1,000 for asset and invoice finance and £25,001 for term loans.
When will the Growth Guarantee Scheme end?
The scheme is due to end in March 2026, but the RLS was extended multiple times, so it may continue for longer.
Does the Growth Guarantee Scheme provide lower interest rates?
Interest rates and fees charged by lenders will vary depending on the specific application.
Interest rates under the Growth Guarantee Scheme are not necessarily lower than a lender’s usual interest rates. In fact, in some cases, they can be higher, which is why it is important to consider multiple finance options to ensure you are entering an appropriate and affordable agreement.
Are PGs required under the Growth Guarantee Scheme?
Personal guarantees can be taken at the lender’s discretion (in line with their normal commercial lending practices). Principal Private Residences cannot be taken as security within the scheme.
The Growth Guarantee Scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it’s completed its normal recovery process.
Which businesses are eligible for the Growth Guarantee Scheme?
The scheme is open to small businesses that are carrying out trading activity in the UK with a turnover of up to £45m, including:
- Sole traders
- Corporations
- Limited partnerships
- Limited Liability Partnerships (LLP)
- Co-operatives and community benefit societies
- Any other legal entity carrying out business activity in the UK.
Banks, building societies, insurance companies, public-sector bodies and state funded primary and secondary schools are not eligible.
The business must not be in difficulty (including not being in relevant insolvency proceedings).
In most cases there is no requirement for businesses to confirm they have been affected by Covid-19.
The lender must assess whether the business has a viable business proposition (but it may disregard any concerns over short-to-medium term business performance due to the impact of Covid-19).
How to apply for the Growth Guarantee Scheme
It is not possible to apply directly to the Growth Guarantee Scheme. Instead, when you are applying for finance, the lender will have the option to use the scheme to provide them with additional security, strengthening your application and increasing the likelihood you will be able to secure finance.
For example, if a business’ finance application does not meet their typical lending criteria the lender may choose to accept the application under the Growth Guarantee Scheme, so they have the added security that 70% of the finance is government backed.
It is important to note that while the government provides backing for 70% of the finance, your business will be legally responsible for making all repayments for the full value and term of the finance agreement.
Watch Video for an in-depth explanation of the Growth Guarantee Scheme by Bluestone:
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