Growth Guarantee Scheme

Businesses may choose to consider approaching other accredited lenders if they are unable to access the finance solution they need via Shire Leasing.

• Up to £2m business group: The maximum amount of a facility provided under the scheme is generally £2m per business group for borrowers outside the scope of the Northern Ireland Protocol, and up to £1m (or such other sum as notified from time to time by us to the lender in accordance with the relevant legal agreement(s)) per business group for Northern Ireland Protocol borrowers. Minimum facility sizes vary, starting at £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for term loans and overdrafts;
• Wide range of products: The Growth Guarantee Scheme supports term loans, overdrafts, asset finance, invoice finance and asset-based lending facilities. Not all lenders will be able to offer all products;
• Term length: Term loans and asset finance facilities are available from three months up to six years, with overdrafts, invoice finance and asset-based lending available from three months up to three years;
• Access to multiple schemes: Businesses that took out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS), Bounce Back Loan Scheme (BBLS) or a Recovery Loan Scheme (RLS) facility before 30 June 2024 are not prevented from accessing Growth Guarantee Scheme, but borrowing under these schemes may reduce the maximum amount the borrower is eligible for;
• Pricing: Interest rates and fees charged by Shire Leasing will vary and will depend on the specific lending proposal. Shire Leasing pricing will take into account the benefit of the Government guarantee;
• Personal Guarantees: Personal guarantees can be taken at Shire Leasing’s discretion, in line with our normal commercial lending
  practices. Principal Private Residences cannot be taken as security within the Scheme;
• Guarantee is to Shire Leasing: The scheme provides the lender (Shire Leasing) with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt;
• Decision-making delegated to Shire Leasing: Growth Guarantee Scheme-backed facilities are provided at the discretion of Shire Leasing. We are required to undertake our standard credit and fraud checks for all applicants.
  The assistance provided through Growth Guarantee Scheme, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow. More information on subsidies is available here.

• Working Capital
• Investment and growth
• Refinancing existing debt/debt consolidation

To be eligible for a business finance facility under GGS, you must meet the following eligibility criteria:

• Turnover limit: The scheme is open to smaller businesses with a
  turnover of up to £45m (on a group basis, where part of a group);
• UK-based: The borrower must be carrying out trading activity in the UK and, for most businesses, generating more than 50% of its income from trading activity;
• Viability test: Shire Leasing must consider that the borrower has a viable business proposition;
• Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings;
• Subsidy limits: Borrowers will need to provide written confirmation that receipt of the Growth Guarantee Scheme facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive. All borrowers in receipt of a subsidy from a publicly funded programme should be provided with a written statement, confirming the level and type of aid received.

Please note, the following are not eligible under Growth Guarantee Scheme:

• Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
• Public sector bodies
• State-funded primary and secondary schools.

Shire Leasing’s Hire Purchase and Sale and Hire Purchase Back eligibility:

• Where the balanced financed is between £15,000 and £25,000, only non-regulated customers will qualify for Hire Purchase and Sale and Hire Purchase Back solutions with Shire Leasing.
• Regulated customers (ie Sole traders, partnerships up to 3 and unincorporated associations) will only qualify for these asset finance solutions with Shire Leasing if the total balance financed exceeds £25,100.

Before making an application, you should check that you meet the eligibility criteria of GGS and have reviewed what different lenders can offer.

It may be useful to prepare the following in advance, to help us understand your requirements and speed up the finance application:

• The amount you would like to borrow
• What the money is for —  so we can check that it’s a suitable business purpose and the right type of finance for your needs
• The period over which you would like to make the repayments

You will need to provide certain documents when you apply for a Growth Guarantee Scheme-backed facility. These are likely to include:

• Management accounts
• Business plan
• Historic accounts
• Details of assets
• Details of previous subsidy awards.

Decision-making on whether a business is eligible for Growth Guarantee Scheme is fully delegated to the British Business Bank’s accredited GGS lenders.

The British Business Bank’s Business Guidance pages have a range of guidance and resources for businesses, including information on how to manage your cashflow and where to find independent advice.

For more information about the Growth Guarantee Scheme directly from the British Business Bank, please visit their dedicated webpage.