About the Growth Guarantee Scheme

The successor to the Recovery Loan Scheme, the Growth Guarantee Scheme (GGS) launched in July 2024 is designed to support access to finance for UK small businesses as they look to invest and grow.

The Growth Guarantee Scheme aims to improve the terms on offer to borrowers. If Compass can offer a commercial loan on better terms, they will do so.


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

If you took out a CBILS, CLBILS, BBLS or RLS facility before 30 June 2024, you are not prevented from accessing the Growth Guarantee Scheme, however, it may reduce the maximum amount you are eligible for.

Key facts

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 sizes vary, starting at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts.

Wide range of products: The Growth Guarantee Scheme supports term loans, overdrafts, asset finance, invoice finance and asset-based lending facilities. However, Compass are not able to offer overdraft facilities.

Term length: Term loans and asset finance facilities are available from three months up to six years, with overdrafts, invoice finance and asset-based lending 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 Compass will vary and will depend on the specific lending proposal. Our pricing will take into account the benefit of the Government guarantee.

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

Guarantee is to Compass Business Finance: 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 Compass Business Finance: Growth Guarantee Scheme-backed facilities are provided at our discretion. We 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 is deemed 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.


Eligibility Criteria

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: Compass 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.

  • Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
  • Public sector bodies
  • State funded primary and secondary schools

If you have any questions, please contact us to discuss or visit the British Business Bank’s website.

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The Growth Guarantee Scheme (GGS) 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. For more information visit british-business-bank.co.uk.

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