Growth Guarantee Scheme | Close Brothers Commercial Finance

About the Growth Guarantee Scheme

The scheme aims to improve the terms on offer to borrowers. If we can offer a commercial loan on better terms, we will do so. Growth Guarantee Scheme-backed facilities are provided at the discretion of Close Brothers Invoice Finance. We are required to undertake our standard credit and fraud checks for all applicants.

Growth Guarantee Scheme features:

Up to £2m facility per 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 based lending and invoice finance, and £25,001 for term loans and overdrafts
Term length: Term loans and asset finance facilities are available from three months up to six years, with overdrafts and invoice finance 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 (organisation) will vary and will depend on the specific lending proposal. (organisation) pricing will take into account the benefit of the Government guarantee;
Personal Guarantees: Personal guarantees are taken at our discretion, in line with our normal commercial lending practices. Principal Private Residences cannot be taken as security within the Scheme.
Guarantee is to Close Brothers Invoice Finance: The scheme provides the lender 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 is delegated to Close Brothers Invoice Finance: Growth Guarantee Scheme-backed facilities are provided at the discretion of Close Brothers Invoice Finance and 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.

Is my business eligible?

To be eligible for support via a recovery loan, a business must fulfil the following 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:

Close Brothers Invoice Finance 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.

The following are not eligible:

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

How can I access the scheme through Close Brothers?

If you are an existing Close Brothers Invoice Finance customer, please contact your account manager who will be able to explain the application process.

If you are a new customer interested in applying for both an invoice finance and GGS facility, please call us on 0808 1499318 to speak to one of our funding specialists.

Business guidance:

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.

Legal notice:

The Growth Guarantee Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business & Trade. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit www.british-business-bank.co.uk/finance-options/debt-finance/growth-guarantee-scheme