What is 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.
The Growth Guarantee Scheme aims to improve the terms on offer to borrowers. If Virgin Money can offer a commercial loan on better terms, we will do so.
Growth Guarantee Scheme-backed facilities are provided at the discretion of Virgin Money. We are required to undertake our standard credit and fraud checks for all applicants.
Scheme Features
Minimum facility size: £30,000 for term loans.
Maximum facility size: £2m per business group for borrowers outside the scope of the Northern Ireland (NI) Protocol, and up to £1m (or such other sum as notified from time to time by The British Business Bank to Virgin Money in accordance with the relevant legal agreement(s)) per business group for Northern Ireland Protocol Borrowers.
Term length: Term loans are available for up to six years.
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.
Interest rates and fees charged by Virgin Money will vary and will depend on the specific lending proposal. Our pricing will take into account the benefit of the Government guarantee.
Personal guarantees can be taken at our discretion, in line with normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.
The scheme provides Virgin Money 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.
Growth Guarantee Scheme-backed facilities are provided at the discretion of Virgin Money and 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);
Viability test
Virgin Money will consider that the borrower has a viable business proposition;
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.
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;
Business in difficulty
The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings;
Looking to find out more?
Find out more about how our loans may be able to help you.
Just so you know...
- You may need to obtain consent for personal searches for each party associated with the business
- To allow a full credit assessment, you may need to provide financial accounts, cashflow statements and/or projections as part of your application
- We may ask you for a personal statement of assets and liabilities
Further help and guides
We're Here to Help
If you’re worried about your finances or need to speak to us about a new or existing Scheme loan, please contact your relationship manager directly or by using the number in the link below.
Independent Advice
You can also contact a list of organisations for free advice.
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.
British Business Bank
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 the British Buisness Bank website.
