The British Business Bank has achieved £2.5bn ($3.3bn) in lending through its Growth Guarantee Scheme, a programme designed to enhance access to finance for smaller UK businesses.
This scheme has seen 69% of its lending directed to businesses outside London and the southeast, highlighting its broad geographic impact.
In particular, more than £200m of lending has been provided in the North West, West Midlands, East of England, and Yorkshire and the Humber regions.
The strategy supports a diverse range of industry sectors across the UK, including over £368m for manufacturing, more than £366m for wholesale and retail, and over £234m for the construction sector.
Launched on 1 July 2024, the Growth Guarantee Scheme offers a variety of financial products through accredited lenders, such as term loans, overdrafts, asset finance, invoice finance, and asset-based lending.
The initiative can back facility sizes of up to £2m, providing lenders with a 70% government-backed guarantee, while borrowers remain 100% liable for the debt.
British Business Bank chief banking officer Reinald de Monchy said: “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.”
A new agreement was recently signed between the British Business Bank and Rural Asset Finance, aiming to unlock around £120m in funding for smaller rural and agricultural businesses across the UK.
The facility is supported by funding from NatWest Bank and BCI Capital, with the British Business Bank guaranteeing a portion of NatWest’s contribution.
The agreement also features sustainability-linked incentives that may reduce borrowing costs if environmental performance targets are met.
“British Business Bank achieves £2.5bn in Growth Guarantee lending” was originally created and published by Leasing Life, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
