The British Business Bank has introduced new, wider eligibility rules which will enable more wholesale and retail businesses to access its Growth Guarantee Scheme.
Under the new eligibility rules, accredited lenders will be able to offer the Growth Guarantee Scheme to small and medium-sized Wholesale & Retail businesses with group turnover of up to £54m, an increase from £45m under the old rules.
Based on current sector deployment, potentially close to 2,100 Wholesale & Retail businesses could benefit from the Scheme changes.
The Scheme already supports term loans and asset finance facilities with repayment terms ranging from three months to six years. Additionally, from November 2026, some participating lenders may be able to offer repayment terms of up to 10 years for these types of facilities, with a maximum size of up to £1.1m (£550,000 in Northern Ireland).
The scheme has provided a total of £662.4m of finance for 4,302 businesses operating in the Wholesale & Retail sector since August 2022.
Reinald de Monchy, Chief Banking Officer, British Business Bank, said: “The broader Scheme eligibility rules, plus the £6.5bn funding boost announced by the Government in the summer, mean tens of thousands more smaller businesses across all parts of the UK can now access the finance they need to realise their full potential.
“The British Business Bank is committed to backing the Wholesale & Retail industry, helping to revive high streets in every Nation and region of the UK”.
Business Secretary Jonathan Reynolds said: "This government wants to back the innovative spirit of entrepreneurs across this country, and we know access to growth finance is crucial to this.
"I fully back the decision by the British Business Bank to expand eligibility to more businesses, providing them with the opportunity to invest, create jobs and help build a stronger economy."
The British Business Bank partners with the private sector to increase the supply and variety of debt finance so that more smaller businesses across the UK can start, grow and thrive.
Its Growth Guarantee Scheme supports a wide range of lending products through a broad variety of accredited lenders including term loans, overdrafts, asset finance, invoice finance and asset-based lending. The Scheme can support facility sizes of up to £2m[1] and provides the lender with a 70% government-backed guarantee. The borrower always remains 100% liable for the debt.
In July, the Government announced a £6.5bn uplift to the Scheme over the next four years which will help an estimated 33,000 businesses across the UK’s Nations and regions.