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 business owes £80,000 at 11% with 36 months left, paying £2,619.10 a month, with £14,287.51 of interest still to pay. It replaces the loan with an £80,000 GGS loan at 8% over 60 months, paying £1,622.11 a month, with £17,326.69 of interest.
The monthly payment falls by £996.99, but the total cost rises by £3,039.19 because the loan runs for 24 months longer. That is why the calculator shows the two results separately.
Refinancing under the scheme
The British Business Bank says you can use GGS to refinance an existing BBLS, CBILS or RLS facility, in part or in full, where your total financing needs (including any increase) are greater than the minimum facility sizes. Any refinancing is a new application, so it must meet the eligibility criteria and the lender's criteria, and it can be sought from your existing lender or a different accredited lender. Existing BBLS borrowers can refinance, but borrower protections and scheme terms differ, so talk to your lender first.
You can also use GGS to refinance an existing commercial facility in certain circumstances, for example where the business is trying to put itself on a more stable financial footing or improve its working capital. Refinancing can be done with or without an increase in the original borrowing.
Check your current agreement for early settlement charges and any other exit costs, and enter them so the comparison is complete.
For the full guide, read GGS refinancing explained.
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 calculator works out each loan's monthly payment and interest, then compares the interest left on the current loan with the interest on the new loan plus fees and exit charges. Fees count once however they are paid. If you borrow more than you owe, the extra cash is shown separately and interest on it is included in the new cost.
It assumes fixed rates and equal monthly payments on both loans. 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 refinance that isn't under the scheme, use the commercial loan refinance calculator.
To see what a lump sum would save, use the GGS early repayment calculator.
Inputs for the GGS refinancing calculator
Where is the business based?
England, Scotland and Wales share the same limits. Choose Northern Ireland to apply its separate limits.
Northern Ireland borrower type
Shown for Northern Ireland only. The limit depends on whether the borrower falls within the Windsor Framework rules and on its sector.
Current loan balance
What you still owe on the loan you would replace.
Current interest rate (nominal)
The yearly rate on your current loan, before monthly compounding.
Months left on current loan
How many monthly payments you have left.
Current monthly payment from your statement
Leave at 0 to work it out from the balance, rate and months left, or enter the payment your statement shows.
Early settlement and exit charges
What your current lender charges to settle the loan early.
New GGS loan amount
The amount you would borrow, before any fees. It can be more than you owe.
Existing GGS and RLS borrowing
GGS or Recovery Loan Scheme borrowing your business group already has. It counts towards the limit, so only the headroom is left.
New interest rate (nominal)
The yearly rate offered on the new loan. Lenders set the rate.
New term
How many monthly payments on the new loan, from 3 to 120.
Fees
Enter any lender arrangement fee, broker fee and other upfront charges, then say how they are paid: separately, added to the loan or deducted from it.
CALCULATOR QUESTIONS
GGS refinancing 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.
Does a lower monthly payment mean I save money?
No. A longer term can lower the payment while raising the total interest. Look at both results.
Can I borrow more than I owe?
The new loan can be larger, and the extra is shown as cash left after clearing the current loan. Interest on that extra is part of the new cost.
Is refinancing a new application?
Yes. It is treated as a new application, and protections under the original and new schemes can differ.
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.