How the Growth Guarantee Scheme works
The Growth Guarantee Scheme (GGS) is a UK government scheme, run by the British Business Bank, that helps smaller businesses get finance. Accredited lenders offer term loans, asset finance, overdrafts, invoice finance and asset-based lending, and the government guarantees 70% of each facility to the lender.
The guarantee protects the lender, not the borrower. The business must repay 100% of the debt, so this calculator never reduces your costs for it. The lender decides whether to lend and sets the interest rate and fees. Lenders may take personal guarantees, and the scheme is scheduled to run until 31 March 2030.
Worked example
A £100,000 loan at 8% over 60 months, with the first payment on 1 December 2024, has a payment of £2,027.64. After 24 payments the balance is about £64,705.64, with £8,289.38 of interest still to come, and the last payment falls on 1 November 2029.
Repaying £20,000 on 1 December 2026 and keeping the same monthly payment leaves £44,705.64, which clears in 24 more months with the last payment on 1 November 2028 and £3,809.25 of interest. That saves £4,480.13 of interest and takes 12 months off the loan, before any charge from the lender.
Adding £200 a month on top clears it in 22 months, with the last payment on 1 September 2028, £3,448.88 of interest, £4,840.50 saved and 14 months off the loan.
Estimates and lender charges
This is an estimate of the outstanding balance under the standard repayment assumptions. It is not a settlement figure. The amount a lender asks for can include accrued interest, early repayment charges and other fees, so ask your lender for a settlement quote.
Your agreement sets any early repayment charge. Enter it as a percentage of the amount repaid early, a fixed fee or both.
Borrowing limits and recent changes
The published limit is generally £2 million per business group, counting GGS and Recovery Loan Scheme borrowing since 1 August 2022. Term loans and overdrafts start at £25,001, and asset finance, invoice finance and asset-based lending from £1,000. In Northern Ireland, borrowers within the scope of the Windsor Framework can borrow up to £1 million in most sectors, £285,000 in primary agriculture and £170,000 in fisheries and aquaculture. Being in Northern Ireland does not by itself set the limit, and your lender confirms which applies. England, Scotland and Wales follow the same UK-wide limits.
On 12 July 2026 the Chancellor announced that GGS will support facility terms of up to ten years for term loans and asset finance, that the annual turnover limit rises from £45 million to £54 million, and £6.5 billion more lending over four years. The British Business Bank is working with accredited lenders to bring these in and says the scheme remains fully operational under its existing terms, so not every lender offers them yet.
How this calculator works
The balance after k payments is the present value of the payments still to come. After a lump sum the monthly payment stays the same, so the loan ends sooner, and the calculator counts the months and the interest until the balance reaches zero. Interest saved is the interest left before the lump sum minus the interest left after it.
It assumes a fixed rate, equal monthly payments and a lump sum paid on a payment date. This is an independent tool, not run or endorsed by the British Business Bank or the UK government, and it does not tell you whether you will be approved. To find a lender, use the British Business Bank's official list of accredited lenders, which you can filter by region and type of finance.
For a loan that isn't under the scheme, use the early repayment calculator.
To see the effect of regular extra payments, use the loan overpayment calculator.
Inputs for the GGS early repayment calculator
Original loan amount
The amount you first borrowed.
Interest rate (nominal, not APR)
The yearly rate on your loan, before monthly compounding.
Original term
How many monthly payments the loan started with, from 3 to 120.
Payments already made
How many monthly payments you have paid so far. It must be less than the term.
Date of your first payment
The date the loan's first monthly payment was due. It dates the lump sum and the final payment.
Lump sum you plan to repay
An extra payment now. If it covers the balance, the loan is settled in full.
Extra you will pay each month
An extra amount on top of each monthly payment after the lump sum. Leave at 0 for none.
Early repayment charge
A percentage of the amount repaid early. Check your agreement for the charge.
Fixed settlement fee
A flat fee your lender charges to process an early repayment, if any.
CALCULATOR QUESTIONS
GGS early repayment calculator questions
What is the Growth Guarantee Scheme?
A UK government-backed scheme where the government guarantees 70% of a business facility to the lender. The British Business Bank runs it.
Do I repay the guaranteed part?
Yes. The business is liable for the whole debt. The guarantee protects the lender, so it does not reduce what you owe.
Is this my settlement figure?
No. It is an estimate. Your lender's settlement quote can include accrued interest, fees and charges.
Does repaying early always save money?
It saves interest, but a lender's early repayment charge can reduce or cancel the saving. The net saving shows this.
What if the lump sum is more than my balance?
The loan is treated as settled in full, and the saving is all the interest still to come, less any charges.
Who sets the interest rate?
The lender. Rates and fees vary, so compare offers from accredited lenders.
How do I apply?
Through an accredited lender. The British Business Bank website lists them and lets you filter by region and type of finance.