Santander has announced a significant achievement, disbursing over £20 million to businesses across the UK through the British Business Bank’s Growth Guarantee Scheme (GGS). This initiative, launched in July 2024, aims to bolster access to finance for smaller enterprises looking to invest and expand, even when traditional collateral is limited.
Key Takeaways
- Santander has provided more than £20 million in funding through the Growth Guarantee Scheme.
- The scheme supports a diverse range of sectors, including construction, manufacturing, technology, retail, and hospitality.
- Businesses are utilising the funding for expansion, acquisitions, and strengthening working capital.
- The GGS offers a 70% government-backed guarantee to lenders for facility sizes up to £2 million.
- Santander research indicates strong business confidence, with 88% expecting revenue increases and over 80% planning to seek external finance.
Supporting Diverse Business Needs
Since joining the GGS in 2025, Santander has facilitated growth across various industries and regions. The funding has been instrumental in enabling businesses to pursue expansion strategies with greater financial flexibility. Notable examples include a construction firm securing £2 million for working capital and growth, a wholesale business completing an acquisition with £1 million, and a technology firm receiving £750,000 to accelerate its development plans. An online retailer has also leveraged £2 million to drive international expansion.
The Growth Guarantee Scheme Explained
The Growth Guarantee Scheme, established by the British Business Bank, is designed to enhance finance accessibility for UK small businesses. It supports a variety of financial products, including term loans, overdrafts, asset finance, invoice finance, and asset-based lending. The scheme generally supports facility sizes up to £2 million, with the lender receiving a 70% government-backed guarantee. Businesses lacking sufficient tangible security are encouraged to explore the scheme’s potential for accessing growth capital.
Business Confidence and Future Outlook
This milestone from Santander aligns with broader positive sentiment among UK businesses. Recent Santander research reveals that 88% of business leaders anticipate revenue increases in the coming year, with more than four in five planning to seek external finance. A significant portion, almost half, expect to raise over £1 million. Felix Peter-Thomas, Business Development Director at Santander, highlighted the scheme’s effectiveness, stating, "The Growth Guarantee Scheme has been a powerful tool in helping us back ambitious UK businesses… Access to the Growth Guarantee Scheme is enabling businesses to unlock growth, support acquisitions and strengthen working capital with confidence."
A Relationship-Led Approach
Santander’s strategy combines the government-backed security of the GGS with a relationship-led approach. This ensures that businesses can access capital in a manner that reflects their operational realities and growth aspirations, fostering confidence and enabling strategic financial moves.
Sources
- Santander provides £20m to businesses through Growth Guarantee Scheme, Greater Birmingham Chambers of Commerce.
