The British Business Bank has confirmed it has now delivered £2.5bn of lending through its Growth Guarantee Scheme, with nearly 70% of funds reaching businesses outside London and the South East.
More than £200m has been provided in each of the North West, West Midlands, East of England, and Yorkshire & The Humber. Key sectors supported include manufacturing (£368m), wholesale and retail (£367m), and construction (£234m).
Chancellor of the Exchequer, Rachel Reeves, said: “The Growth Guarantee Scheme has made a huge impact on our regional economies, helping smaller businesses across the UK to invest and grow, creating jobs and putting more money in people’s pockets.
“The British Business Bank’s mission to support the financing needs of smaller businesses is vital to our Plan for Change growth mission which is why we increased its firepower by two-thirds at the Spending Review.”
The scheme, launched in July 2024, supports UK SMEs with access to finance through accredited lenders offering a range of products including term loans, overdrafts and asset-based lending. It provides a 70% Government guarantee to lenders, while borrowers remain fully liable.
Gareth Thomas, Minister for small business, said: “As part of our Plan for Change we are committed to breaking down the barriers SMEs face when starting and scaling up, to create jobs and further boost the economy.
“This is an important milestone for the Growth Guarantee Scheme which plays a key role in helping us achieve this, by providing vital access to finance for smaller businesses right across the UK.”
Reinald de Monchy, chief banking officer at the British Business Bank, said: “This milestone is a demonstration of the important work done by the 50+ delivery partners who have signed up to the Growth Guarantee Scheme, since its launch in July 2024.
“In particular, it is fantastic to see how much lending has been provided to firms under five years old, and the diversity of sectors supported.
“The Government’s recent Spending Review will provide the scheme with funding until March 2030, and we are excited to see the additional impact it can generate for smaller businesses across the UK.”
Stefan Wolvaardt, chief financial officer at Simply Asset Finance, said: “With the government setting ambitious growth targets, injecting further funding into the system was crucial if we are to help SMEs across the UK achieve their potential.
“This is very welcome and we’re proud to be working alongside the British Business Bank to help deliver the Growth Guarantee Scheme.”
Phil Hughes, deputy managing director of SME lending at Paragon Bank, said: “The Growth Guarantee Scheme has proven to be a powerful tool in enabling Paragon to provide greater support to ambitious UK businesses who need funding.
“We’ve already witnessed the significant impact it can have, particularly in key sectors like construction and agriculture, where initial investment costs often pose a major hurdle.
“The strong early results and high demand are clear indicators of its effectiveness – with continued support from the British Business Bank, we look forward to expanding our efforts even further.”
Tina McKenzie, policy chair at the Federation of Small Businesses, said: “FSB campaigned for the Growth Guarantee Scheme to be created, and so we’re pleased to see this latest lending record, which shows just how vital the Scheme has been to so many small businesses up and down the country.
“As the UK’s grassroots business network, we particularly welcome how the funding has been spread right across all the regions and nations, unlocking wealth and job creation in FSB members and others in local communities.
“Small firms will be the engine of future economic growth, so getting them the finance they need is key.
“The Growth Guarantee Scheme reaches promising businesses which might otherwise not be able to turn their business plan into reality.”
