The Growth Guarantee Scheme - replacing Recovery Loan Scheme (RLS) coming soon

At last week's budget the Chancellor announced the re-branding of RLS. From 1st July it will be known as a Growth Recovery offering, providing vital opportunity for the SME sector to invest and thrive and take their business to the next level on their growth journey. The Government loan schemes that launched at the height of the Pandemic, started with Bounceback, then CBILS and now RLS, have been a lifeline for many businesses. RLS alone has backed ￡1b in supported funding since August 2022.

As a Broker and member of the NACFB Chair as well as a member of the Federation of Small Businesses (FSB) we work together as a voice for the SME sector to put pressure on the Government to continue offering such schemes. Not as many funders are accredited this time round, and we are surveying those who have not taken up the initiative in an attempt to bring the product to market, making it more widely available.

Here at Productivity Finance Ltd we have access to the lenders offering the scheme and have never stopped supporting business owners from the outset, having put funding in place of over ￡5m for businesses of all shapes and sizes.

So what will the new scheme offer:

• Loan term 1-6 years
• The Government will guarantee 70% of the loan amount (lenders may request business owners to pledge a personal guarantee for the shortfall and certainly for loans above ￡250k)
• Amounts up to ￡2m (￡500k sits comfortably with many quick turnaround cashflow lenders)
• Funds can be used for growth and expansion, cashflow, CAPEX, acquiring stock/raw materials, headcount increase
• No penalty fees to settle early
• You must be a UK trading business but can be a sole trader, partnership or limited company
• Turnover is capped at ￡45m pa and the business must have less than 250 employees
• The scheme runs until March 2026

How to access the scheme

Contact us here https://www.productivityfinance.co.uk/ or call us to talk Tamara Renshaw ACBI (Chartered Banker) 07741 478221 through your plans and we'll help you secure the funding you need. Did you know that there is a 33% more chance of having a business loan approved when you use the services of an experienced and expert Broker?

Source: NACFB