The British Business Bank has announced a significant achievement, reaching a £2.5 billion lending milestone under its Growth Guarantee Scheme. This initiative, launched in July 2024, aims to bolster smaller businesses across the UK by improving their access to finance, with a strong emphasis on regional development.
Growth Guarantee Scheme fuels UK business expansion
The Growth Guarantee Scheme has successfully provided £2.5 billion in lending to UK small businesses, with a notable 69% of these funds directed to companies located outside of London and the South East. This demonstrates a commitment to fostering growth across the entire nation.
Key Takeaways
- £2.5 billion lent under the Growth Guarantee Scheme.
- 69% of lending has gone to businesses outside London and the South East.
- Scheme launched on July 1, 2024, supporting various finance products.
- Government provides a 70% guarantee to lenders.
Regional Impact and Sectoral Support
Several regions have seen substantial benefits, with over £200 million provided to each of the North West, West Midlands, East of England, and Yorkshire & The Humber. Specifically, Yorkshire and the Humber has received £202 million across 1,052 facilities. The North West has benefited from £272 million across 1,495 facilities.
The scheme has also supported a diverse range of industries. Manufacturing has received over £368 million, wholesale and retail sectors have benefited from more than £366 million, and the construction sector has secured approximately £234 million.
Scheme Details and Government Backing
Launched to help UK smaller businesses invest and grow, the Growth Guarantee Scheme offers various financial products, including term loans, overdrafts, asset finance, invoice finance, and asset-based lending. It supports facility sizes up to £2 million, with the government backing 70% of the loan to the lender, while the borrower remains fully liable for the entire debt.
Ministerial and Industry Endorsements
Gareth Thomas, Minister for Small Business, highlighted the scheme’s role in breaking down barriers for SMEs, stating, "This is an important milestone for the Growth Guarantee Scheme which plays a key role in helping us achieve this, by providing vital access to finance for smaller businesses right across the UK."
Reinald de Monchy, Chief Banking Officer at the British Business Bank, expressed enthusiasm for the scheme’s reach, particularly to firms under five years old and across diverse sectors. He added, "The Government’s recent Spending Review will provide the scheme with funding until March 2030, and we are excited to see the additional impact it can generate for smaller businesses across the UK."
Industry partners also shared positive feedback. Stefan Wolvaardt, Chief Financial Officer at Simply Asset Finance, commented, "This is very welcome and we’re proud to be working alongside the British Business Bank to help deliver the Growth Guarantee Scheme." Phil Hughes, Deputy Managing Director of SME Lending at Paragon Bank, noted the scheme’s effectiveness, especially in sectors like construction and agriculture.
Sources
- Yorkshire and the Humber firms supported with £202m from British Business Bank, Yorkshire Post.
- Growth Guarantee Scheme Lending Hits £2.5bn Milestone, FF News | Fintech Finance.
- British Business Bank supports 600 smaller businesses in Northern Ireland – Impact Report, Insider Media Ltd.
- British Business Bank hits £2.5bn milestone under Growth Guarantee Scheme – The Intermediary, The Intermediary.
- North West benefits from £2.5bn British Business Bank Growth Guarantee Scheme, TheBusinessDesk.com.
