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Growth Guarantee Scheme Loan

Apply for the Growth Guarantee Scheme Loan
Apply for GGS Scheme
The Growth Guarantee Scheme Loan (GGS) is the successor scheme to the Recovery Loan Scheme, which is designed to support access to finance for UK small businesses as they look to invest and grow

At a glance – GGS with HSBC:

For all amounts we will review security requirements on an individual basis. If security requirements (including personal guarantees) are deemed appropriate we will discuss and agree with customers as part of our credit approval process

Existing business assets may be taken to secure a GGS loan.

There is no fee required to be paid by you for the Government guarantee.

The GGS scheme is open to new and existing customers.

The GGS scheme will be available until 31st March 2026.

The scheme will only be open to businesses with an annual group turnover of £45,000,000 or less.

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

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

The timing for processing applications will vary and are subject to receipt of some supporting documentation and information (such as the list below):

  • Cash flow forecast
  • Business plan
  • Latest Annual accounts

Capital repayment holidays are available for up to 24 months throughout the life of the loan from drawdown, subject to status.

A Government guarantee which secures bank loans to any viable business with a sound borrowing proposal.

The GGS loan can be used where we would either:

  • not have been prepared to offer a Commercial Facility for the same amount on similar terms; or
  • would only have been prepared to offer a Commercial Facility on similar terms at a higher price.

Any UK business not subject to the Northern Ireland Protocol can apply for a GGS loan of between £25,001 and £2,000,000 subject to (i) eligibility and viability assessments and (ii) previous relevant subsidy amounts received by you or any member of your group.

Any UK business that is subject to the Northern Ireland Protocol can apply for an GGS loan between £25,001 and £1,000,000 subject to (i) eligibility and viability assessments and (ii) previous relevant subsidy amounts received by you or any member of your group and (iii) specific sector sub-limits as mentioned further in the Eligibility section below.

Loan term from 1 year up to a maximum of 6 years.

A loan arrangement fee of 1.5% of the facility amount is payable for GGS loans of between £25,001 and £299,999 and is negotiable for GGS loans between £300,000 and £2,000,000

No loan prepayment fee should you wish to repay early (although fixed rate breakage costs may be payable for fixed rate GGS loans of £300,000 and above.)

Variable and fixed interest repayment options available, subject to amount borrowed and loan term.

Key Benefits

Businesses that have received support under the previous Government COVID19 guaranteed loan schemes are still eligible to access finance under this scheme, subject to eligibility and limitations.

Funding to support your businesses as they look to invest and grow

Capital repayment holidays available on an GGS loan where needed, subject to approval.

Repayments will be higher and more interest payable when capital repayment holidays are taken.

  1. Is your business turnover or, if applicable, the aggregate turnover of your group for the last financial year less than £45,000,000 or forecasted to be less than £45,000,000 where your business has been trading for less than 12 months?
  2. Is your business based in the UK?
  3. Will the funding you require be used to support business activity within the UK?1
  4. Is over 50% of your group's business turnover generated from trading activity?*2
  5. Do you operate in an eligible sector*3?
  6. If you are not subject to the Northern Ireland Protocol, is the amount you require to borrow between £25,001 and £2,000,000?*4
  7. If you are subject to the Northern Ireland Protocol, is the amount you require to borrow between £25,001 and £1,000,000?*5
  8. Is funding required for 6 years or less?
  9. You must not be a business in difficulty*6
  10. You understand that you will be liable for 100% of any facility that may be provided, and that HSBC will always seek to recover the outstanding balance of any facility from you and the proceeds of any security you, or any security provider on your behalf, has given for the loan.
  11. A GGS loan must not be used in support of export related activities.

*1 If you are a registered charity or a further education college then this criterion will be satisfied if you are or will be engaged in activities in the UK upon first draw down of that GGS loan.

*2 “Trading Activity” means any trading or commercial activity that generates turnover (whether or not such activity is carried on with the intention of making a profit). This Eligibility Criterion shall not apply where the Applicant is a registered charity or further education college.

*3 The following trades and organisations are not eligible to apply: Banks, Building Societies, Insurers and Reinsurers (but not insurance brokers); The public sector including state funded primary and secondary schools.

*4 If you are not in scope of the Northern Ireland Protocol, the maximum GGS loan amount of £2,000,000 may be reduced if you or any member of your group have received certain previous subsidies. We will require you to confirm the relevant subsidy (if any) you or any member of your group have received as part of your application.

*5 If you are in scope of the Northern Ireland Protocol, the maximum GGS loan amount of £1,000,000 may be reduced if you or any member of your group have received certain previous subsidies and/or are in one of the following sectors, which will be subject to maximum loan amount sub-limits as follows: £110,000 for agriculture and £170,000 for Primary Production of Fishery or Aquaculture Products. We will require you to confirm the relevant subsidy (if any) you or any member of your group have received and whether your business is in one of these sectors as part of your application.

*6 Please refer to the Business in Difficulty section in the FAQs for further information.

Growth Guarantee Scheme Loan FAQS

The Growth Guarantee Scheme Loan is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. 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 https://www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme.

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