UK Government Business Loan Schemes: GGS, Start Up, BBLS
UK government provides three main support schemes for UK SMB borrowers: Growth Guarantee Scheme (live), Start Up Loans (live), and Bounce Back Loan / Recovery Loan legacy (in repayment). Each has specific eligibility, structure, and use case. This guide covers what's live in 2026, who qualifies, and how to apply.
Director, BestBusinessLoans
Oliver leads BestBusinessLoans's editorial reviews and methodology. With a background in UK commercial finance, he oversees lender research, rate verification and review independence.
Last reviewed: 11 May 2026
Growth Guarantee Scheme (GGS), live to March 2030
The current UK government-backed lending scheme for SMBs. Government provides 70% guarantee to accredited UK lenders on facilities of £25,001 to £2 million per business. Eligibility: UK businesses with turnover up to £45 million per year, trading commercially in the UK. Products covered: term loans, overdrafts, asset finance, invoice finance, revolving credit. Accredited lender list (most UK clearing banks, challenger banks, and 60+ specialist providers) maintained by British Business Bank. Application via the accredited lender, not directly via government. Extended in October 2024 Budget through to 31 March 2030.
Start Up Loans, live, no scheduled end
British Business Bank scheme for pre-revenue and very-early-stage UK businesses. Personal loan to founder (not company) of £500 to £25,000, at fixed 6% APR over 1-5 year term. Eligibility: UK-resident founder, business under 36 months trading, viable business plan. Application via delivery partners (Transmit Startups, GC Business Finance, BizBritain, X-Forces, others by region and sector). Free 12-month mentoring included. Founding team can stack: 4 founders can reach £100k combined. The scheme is the cheapest UK borrowing option for pre-revenue founders by some margin.
Recovery Loan Scheme (RLS), closed to new, legacy in repayment
Predecessor to GGS. Ran 6 April 2021 to 30 June 2024 across three phases with 70-80% guarantees on £25k-£2m facilities. Closed to new applications. Many UK SMBs still repaying RLS facilities; the refinance routing into GGS is straightforward where trading position is clean. See our /guides/bbls-refinance-strategy-2026/ context (similar mechanics apply to RLS where refinance into GGS is being considered).
Bounce Back Loans (BBLS), closed since 2021, legacy in repayment
COVID-era scheme, originated 4 May 2020 to 31 March 2021. £2,000-£50,000 facilities at 2.5% fixed APR with 6-10 year terms. Pay As You Grow extensions covered most cashflow stress through 2022-2024. By 2026, most BBLS borrowers are well into repayment. The 2.5% rate is significantly below commercial UK lending; sticking with BBLS is cheaper than refinancing in almost all cases. See our /guides/bbls-refinance-strategy-2026/ for the full framework.
Other UK government finance schemes
Three sector-specific or product-specific schemes. (1) Innovate UK funding, grants and R&D-led loans for innovation-focused businesses; competitive application, longer timelines than commercial finance. (2) British Business Investments, wholesale-finance arm of British Business Bank, investing through intermediary funds rather than directly. (3) Regional growth funds, Scotland (Scottish Enterprise), Wales (Development Bank of Wales), Northern Ireland (Invest NI). Each has its own product mix; most include both grants and loans for qualifying businesses. Worth checking regional schemes if you operate in Scotland, Wales, or NI.
FAQ
How do I apply for the Growth Guarantee Scheme?
Via an accredited lender. You apply for a standard commercial facility (term loan, overdraft, asset finance, invoice finance) with a lender that's on the GGS accredited list. The lender flags the application for GGS support; the government guarantee is invisible to the borrower beyond a slightly easier credit decision in some cases. You don't apply directly to the government.
Does GGS get me a lower interest rate?
Not usually directly. The 70% government guarantee reduces lender loss-given-default, which softens credit policy at the margin (lenders may engage with files they would otherwise decline) but rarely translates to a published-rate reduction. The benefit is access, not price.
Can I get a Start Up Loan if I've had one before?
Only if the previous one is fully repaid. The scheme allows one Start Up Loan per founder at any time; a second loan requires the first to be cleared. For founding teams, each founder can hold one loan separately at the same time.
Do I have to repay a Start Up Loan if my business fails?
Yes, personally. The loan is to the founder personally, not to the company. If the business fails the founder remains liable for the personal loan. This is a meaningful difference from commercial company-level lending where company insolvency typically discharges company debt. Founders should size Start Up Loans against personal affordability, not just business need.
Are there UK government grants instead of loans?
Yes, sector-specific. Innovate UK runs competitive grant programmes for R&D and innovation projects. Sector grants exist for energy (renewables, energy efficiency), creative (cultural recovery), agriculture (Defra schemes), and several others. Grants are typically smaller, more competitive, and slower than commercial lending; suited to specific use cases rather than general working capital.
Can I combine GGS borrowing with Start Up Loan?
Mechanically yes, they're separate schemes. A founder can hold a personal Start Up Loan while their company holds a GGS-backed commercial facility. The two operate independently and don't conflict on eligibility.
Reviewed by Oliver Mackman, Director. Last reviewed: 2026-05-11.