Funding reaches thousands of small businesses nationwide with a strong focus outside the capital
The British Business Bank has announced it has surpassed £2.5 billion in lending under its Growth Guarantee Scheme, marking a significant milestone just over a year since the initiative launched in July 2024.
Aimed at improving access to finance for smaller businesses across the UK, the scheme has proven crucial in distributing funding beyond the capital, with 69% of the total lending directed to regions outside of London and the South East. Notably, more than £200 million has been channelled into each of the North West, West Midlands, East of England, and Yorkshire & The Humber.
The scheme, supported by a broad network of over 50 accredited lenders, offers a variety of financial products such as term loans, overdrafts, asset and invoice finance, and asset-based lending. It allows for facility sizes of up to £2 million, with lenders receiving a 70% government-backed guarantee. Borrowers remain fully responsible for their debt.
The breadth of industry support under the scheme has also been highlighted. Manufacturing has received over £368 million, while the wholesale and retail sectors secured more than £366 million. The construction industry has benefited from over £234 million in support.
Speaking on the milestone, Chancellor of the Exchequer Rachel Reeves said: “The Growth Guarantee Scheme has made a huge impact on our regional economies, helping smaller businesses across the UK to invest and grow, creating jobs and putting more money in people’s pockets. The British Business Bank’s mission to support the financing needs of smaller businesses is vital to our Plan for Change growth mission which is why we increased its firepower by two-thirds at the Spending Review.”
Reinald de Monchy, Chief Banking Officer at the British Business Bank, acknowledged the collaborative efforts behind the scheme’s delivery: “This milestone is a demonstration of the important work done by the 50+ delivery partners who have signed up to the Growth Guarantee Scheme, since its launch in July 2024. In particular, it is fantastic to see how much lending has been provided to firms under five years old, and the diversity of sectors supported.
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 lenders have also welcomed the continued support and impact of the scheme.
The Federation of Small Businesses, which actively campaigned for the scheme, has praised the progress to date. Tina McKenzie, Policy Chair at FSB, said: “FSB campaigned for the Growth Guarantee Scheme to be created, and so we’re pleased to see this latest lending record, which shows just how vital the Scheme has been to so many small businesses up and down the country. As the UK’s grassroots business network, we particularly welcome how the funding has been spread right across all the regions and nations, unlocking wealth and job creation in FSB members and others in local communities.
Small firms will be the engine of future economic growth, so getting them the finance they need is key. The Growth Guarantee Scheme reaches promising businesses which might otherwise not be able to turn their business plan into reality.”
Gareth Thomas, Minister for Small Business; Stefan Wolvaardt, CFO of Simply Asset Finance; and Phil Hughes, Deputy Managing Director at Paragon Bank also shared their support for the scheme, highlighting its role in improving access to finance and driving growth across key sectors.
With continued government backing until March 2030, the scheme is poised to further expand its support, delivering finance to new and growing enterprises across the country.
