Capitalise urges firms facing a tight start to 2027 to check whether they qualify for the expanded Growth Guarantee Scheme. With rising wage bills and higher inflation forecast following this week's Budget, business finance platform Capitaliseis urging small businesses to look at government-backed lending that many may not realise is available to them.
The Growth Guarantee Scheme, run by the British Business Bank, received a £6.5bn uplift earlier this year. It is expected to unlock a further £6.5bn of lending over four years and support an estimated 33,000 businesses across the UK.
The expansion raised the turnover limit for eligible businesses from £45m to £54m and extended some facility terms from six years to ten. The scheme gives lenders a 70% government-backed guarantee, which can help businesses access finance they might otherwise struggle to secure.
Nick Richardson, Head of Funding at Capitalise, said:
"The Budget gave small businesses some help, but it also confirmed higher wage bills and a slower economy next year. For many owners, finding affordable finance in the first half of 2027 will be essential.
"The Growth Guarantee Scheme is one of the most useful tools available, yet it rarely makes headlines. A lot of business owners assume government-backed lending is only for start-ups or for businesses in trouble. In fact, it covers term loans, overdrafts, asset finance and invoice finance, and the higher turnover limit means many more established firms now qualify.
"Because the government guarantees part of each loan, lenders can say yes to businesses they might otherwise turn down. The borrower is still fully responsible for repaying the debt, so it is important to borrow for a clear purpose. But for a business that needs to invest, hire or get through a quiet January, it is well worth asking whether a scheme-backed facility is an option."
|
What the Growth Guarantee Scheme offers
|
