£500m Funding Boost Offers Support to SME's Facing Global Pressures
15th April 2025
The government has introduced a £500m funding boost through the Growth Guarantee Scheme to help smaller businesses across the country tackle financial challenges arising from changes in global tariff rates.
Managed by the British Business Bank, the Growth Guarantee Scheme works with around 50 accredited lenders and to date has supported over £2.1bn in finance across 13,447 facilities.
The additional £500m will enable lenders to offer more lending capacity to businesses affected by recent tariff changes.
Businesses can apply for up to £2m in lending, with the government backing 70% of the loan.
This support is intended to help businesses manage cash flow or meet working capital needs, but they must be able to repay any debt taken on.
Reinald de Monchy, co-chief banking officer at the British Business Bank said:
“The Growth Guarantee Scheme and its predecessors have proven themselves to be an important means of supporting smaller UK businesses over the last forty years. The Growth Guarantee Scheme can be used counter-cyclically, enabling smaller businesses to obtain funding during times of uncertainty such as we are experiencing currently. It is therefore important and necessary to see additional capacity made available to support smaller UK businesses at this time.”
The scheme covers a variety of financial products, including term loans and overdrafts, to help businesses address cashflow challenges.
