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    Growth Guarantee Scheme – the new RLS

    The Recovery Loan Scheme (RLS), which was originally set up to support SMEs during the pandemic with government-backed lending as a successor to The Coronavirus Business Interruption Loan Scheme (CBILS), has now come to an end, and replaced with The Growth Guarantee Scheme (GGS), however, the terms generally remain the same.

    The GGS is designed to support access to funding for SMEs as they look to invest and grow. Launched on 1 July 2024, the scheme offers a wide range of products supported by different lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending, and is set to run to 31 March 2026. The scheme, which is very similar to the RLS, is designed to help ‘borderline’ businesses who may otherwise find access to funding more difficult.

    What are the key features of GGS?

    • You can borrow a maximum of £2million per business group, with minimum facility sizes varying from £1,000 for asset finance, invoice finance and asset-based lending, and £25,001 for terms loans and overdrafts
    • GGS provides the lender with a government-backed 70% guarantee against the outstanding balance of the facility – however, it’s important to remember that your business remains 100% liable for repayment of the finance
    • You can borrow for a maximum of six years on term loans and asset finance facilities (minimum three months) and three years on overdrafts and invoice finance facilities (minimum three months)

    Is my business eligible?

    In order to qualify for a facility under GGS, your business must meet certain eligibility criteria.

    Your business must:

    • Be engaged in trading activity in the UK, with core operations in the UK
    • Generate more than 50% of turnover from trading activity (registered charities and further education establishments are exempt from this requirement for facilities offered after 9 March 2023)
    • Have a turnover not exceeding £45m per annum (on a group basis, where you are part of a group)
    • Not be in difficulty, including no involvement in insolvency proceedings
    • Not be a bank/building society; an insurer or reinsurer (can be an insurance broker); a public sector body; a state funded primary or secondary school; or an individual other than a sole trader or a partner acting on behalf of a partnership

    How do I apply?

    Businesses can apply for lending under GGS directly through a number of accredited lenders which can be found on the British Business Bank website, or speak to a trusted member of the PM+M cloud team who can explore your requirements in more detail and provide tailored advice on the solution which is most likely to meet your needs.

    What alternatives are available?

    Aside from the GGS, some lenders are offering things like debenture backed products, as an alternative to offering a personal guarantee, as well as interest-only periods of three months to give businesses time to deploy funds and start to benefit before expecting repayments.

    If you need funding for your business, and you are looking for alternatives to ‘regular’ funding options, our expert team can discuss your circumstances in more detail and provide tailored advice to suit your needs.

    Get in touch

    Get in touch with the PM+M team if you are interested in applying for funding through the GGS to improve your long-term capital position, fill a short-cash flow gap, invest in new assets, or something else. We have a funding partnership in place which means we have access to wide variety of lenders to meet your needs, and our team of experts will work with you to recommend the best solution to meet your individual requirements.

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