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
Lender A offers £100,000 at 8% over 60 months with no fees: £2,027.64 a month and a total cost of £21,658.37. Lender B offers 7.5% with a £2,000 fee deducted from the loan: £2,003.79 a month, and you receive £98,000 while still owing £100,000.
Lender B has the lower monthly payment but its total cost is £22,227.69, and its effective annual rate is 8.68% against 8.30% for Lender A. The fee turns the lower headline rate into the dearer offer.
Reading the comparison
A nominal rate is not an APR or an annualised cost. The effective annual rate here allows for fees and for when they are paid, so offers with different fee arrangements can be compared on the same footing.
The British Business Bank limits lenders' upfront fees, including broker fees, to a maximum of 5%. It does not regulate the broker market, so a broker may charge fees outside its relationships with lenders. Enter every fee you will pay so the comparison is complete.
The cheapest offer under these assumptions is not always the best. Security, personal guarantees, covenants, early repayment terms and repayment flexibility can matter as much as cost.
For who sets rates and fees, read GGS interest rates and fees.
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
Each offer's payment is worked out with the standard fixed-rate formula, or interest only for an interest-only structure, where you pay the interest each month and repay the whole loan at the end. Total cost is interest plus fees. The effective annual rate is the yearly equivalent of the monthly rate that makes the payments worth exactly the cash you receive.
It compares figures you enter and does not check them against what a lender will actually offer. 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 loans that aren't under the scheme, use the business loan comparison calculator.
To compare a GGS loan with debt you already have, use the GGS refinancing calculator.
Inputs for the GGS loan comparison calculator
Amount
The loan amount in each quote, before any fees.
Rate (nominal)
The yearly rate in each quote, before monthly compounding.
Term
How many monthly payments in each quote, from 3 to 120.
Arrangement fee and broker fee
The lender's set-up fee and any broker charge. Leave at 0 if there isn't one.
How fees are paid
Separately from your own money, added to the loan, or deducted from the money you receive.
Payment structure
Capital and interest repays the loan gradually. Interest only at first pays only interest for some months, then repays the loan over the rest of the term. Interest only with a lump sum repays the whole loan at the end.
Interest-only months
Used only for the interest-only-at-first structure: how many months at the start you pay only interest.
Compare a third offer?
Add Lender C to compare three quotes.
CALCULATOR QUESTIONS
GGS loan comparison 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 the cheapest offer the best?
Not always. It is the cheapest under the figures you entered. Security, covenants, early repayment terms and flexibility also matter.
Why use the effective annual rate?
It allows for fees and when they are paid, so offers with different fee arrangements can be compared fairly. It is not an official APR.
Who sets the interest rate?
The lender. Rates and fees vary, so compare offers from accredited lenders.
Does the calculator tell me if I'll be approved?
No. It shows how an amount sits against the published scheme limits. Accredited lenders decide whether to lend.
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.