British Business Bank reaches £230m lending milestone in West Midlands under its Growth Guarantee Scheme
More than £230m of lending has been delivered to smaller businesses in the West Midlands under the British Business Bank’s Growth Guarantee Scheme over the last 12 months. The scheme has enabled 1,253 guaranteed facilities in the region.
69% of lending has been delivered to businesses outside London and the South East. The West Midlands (10%), alongside the North West (12%), saw the highest levels of investment outside of London and the South East.
Nationally, the British Business Bank has delivered more than £2.5bn under the Growth Guarantee Scheme, with £633.69m (27%) of lending provided to firms under five years old.
A wide range of industry sectors have been supported through the scheme. This includes over £368m for manufacturing, over £366m to wholesale and retail, and over £234m to the construction sector.
The Growth Guarantee Scheme is designed to support access to finance for UK smaller businesses as they look to invest and grow. The Growth Guarantee Scheme launched on 1 July 2024, with a wide range of products supported by a broad variety of accredited lenders, including term loans, overdrafts, asset finance, invoice finance and asset-based lending.
The Growth Guarantee Scheme can support facility sizes of up to £2m and provides the lender with a 70% government-backed guarantee. The borrower always remains 100% liable for the debt.
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, 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.”
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”.
