Am I eligible for the Growth Guarantee Scheme as a hospitality business?
Short answer: most established UK hospitality businesses can qualify — if you meet core lender criteria
Yes, many hospitality businesses — including restaurants, pubs, cafés, hotels, caterers and leisure venues — can be eligible for the UK Government’s Growth Guarantee Scheme (GGS) via participating lenders. To qualify, you’ll typically need UK trading presence, turnover up to £45m, a viable business, and a clear funding purpose. Final eligibility is set by each accredited lender, and all borrowing remains 100% the borrower’s responsibility.
What the Growth Guarantee Scheme is (in brief)
The GGS is a British Business Bank-backed guarantee to lenders, designed to unlock finance for smaller UK businesses. It can support term loans, asset finance, invoice finance and overdrafts where a lender would benefit from a partial government guarantee. The guarantee is to the lender, not to you, and you remain liable for the full debt, interest and fees.
Why hospitality is a strong fit
Hospitality often faces seasonality, energy and wage pressures, refurbishment cycles and equipment needs. The GGS can support working capital smoothing, refits, kitchen equipment, EPOS upgrades, and growth projects that improve guest experience or capacity. Many lenders on the scheme actively serve hospitality and leisure, subject to their standard underwriting.
Typical facility sizes and scope
Borrowing amounts can be up to £2m per business in Great Britain, and up to £1m in Northern Ireland, subject to subsidy rules and lender policy. Available facility types include term loans, overdrafts/revolving credit, asset finance and invoice finance. Personal guarantees may be requested at lender discretion, but a principal private residence cannot be taken as security under the scheme.
Important compliance note
Best Business Loans is an independent introducer and does not provide finance directly. Information here is general and for guidance only; it is not advice. Always review lender terms, seek independent advice where appropriate, and note that eligibility and pricing are decided by the lender, not the British Business Bank.
1) Eligibility criteria for hospitality at a glance
Most hospitality companies can apply if they meet the scheme and lender criteria. Below are common requirements you should expect across participating lenders, tailored for hotels, restaurants, pubs and leisure venues. This is indicative and may vary by provider.
Core scheme and lender requirements
- UK-based trading entity (Ltd, LLP, PLC, or partnership) with turnover typically up to £45m.
- You operate in an eligible sector; hospitality is generally eligible.
- Your business is viable and not in insolvency proceedings at the point of application.
- Funding purpose is for business use (e.g., working capital, investment, or refinancing).
- You meet the lender’s credit, affordability and underwriting tests.
What “viability” usually means in practice
- Demonstrable trading history, repeat custom, or forward bookings pipeline.
- Evidence that cash flow can support repayments across seasonal peaks and troughs.
- Clear plan for how funds will improve trading stability, margins or capacity.
Sector specifics for pubs, restaurants and hotels
- Leased vs freehold premises can affect security options and affordability views.
- VAT, business rates and energy costs should be factored into forecasts.
- Food, beverage and staffing cost control should be evidenced in your plan.
Location differences to note
In Northern Ireland, the maximum GGS facility is typically £1m due to subsidy rules, versus £2m in Great Britain. Some lenders apply their own internal caps and may specialise in certain hospitality sub-sectors. Check lender-specific criteria when comparing options.
2) What lenders look for from hospitality applicants
Lenders assess each hospitality business on merit, using your financials, trading data and management story. The scheme support does not replace underwriting; it supplements it. Preparing well can materially improve your chances.
Financial information to prepare
- Last two years’ filed accounts and current year management accounts.
- 12–24 month cash flow forecast that reflects seasonality and costs.
- Business bank statements (usually last three to six months).
- Schedule of existing finance, any arrears arrangements, and asset lists if relevant.
Operational evidence that helps
- EPOS reports, covers/occupancy, booking data or average spend trends.
- Supplier and staffing plans that show cost control and continuity.
- Refurbishment schedules, capex breakdowns, and project timelines.
Credit, security and guarantees
- The lender may request a personal guarantee, depending on risk and facility size.
- Your principal private residence cannot be taken as security under the scheme.
- Asset-backed funding (e.g., for kitchen equipment or vehicles) may reduce risk pricing.
What if you’ve had a tough trading period?
Hospitality can be volatile, so lenders will consider credible turnaround or improvement plans. Show actions taken on pricing, menus, staffing, energy use or marketing to rebuild margins. Explain any one-off shocks and demonstrate how the new finance supports resilience and growth.
3) What you can use GGS finance for in hospitality
The Growth Guarantee Scheme supports a broad set of business purposes aimed at stabilising cash flow and enabling growth. You can combine short-term resilience moves with longer-term upgrades in one plan. The key is clarity on impact.
Common eligible uses
- Working capital to navigate seasonality, events, or cost spikes.
- Fit-out and refurbishment of dining rooms, bars, kitchens or guest areas.
- Equipment and asset purchases (e.g., ovens, refrigeration, dishwashers, coffee machines).
- Technology upgrades (EPOS, stock control, booking systems, kiosks, PMS).
- Marketing, brand refresh, and menu development tied to measurable goals.
Refinancing and consolidation
- Refinancing existing business debt may be considered, subject to lender rules.
- Consolidation can simplify repayments and improve cash flow predictability.
- Lenders will test that refinancing makes your position more sustainable.
Facility types available under GGS
- Term loans for refurbishments, acquisitions or multi-site rollouts.
- Overdrafts or revolving credit for working capital and seasonality.
- Asset finance for equipment, vehicles, furniture and fixtures.
- Invoice finance for eligible B2B income streams (e.g., catering contracts).
Typical amounts and durations
Facilities can be sized from tens of thousands to seven figures, subject to affordability and lender policy. Terms often range from 1–6 years for loans and asset finance, with overdrafts and invoice finance arranged as revolving facilities. Speak to a provider to confirm their minimums, maximums and pricing approach.
4) How to check your eligibility and apply — without contacting dozens of lenders
Best Business Loans helps you explore the Growth Guarantee Scheme efficiently by matching your profile to participating lenders and specialist brokers. We do not provide finance directly, and there’s no obligation to proceed. Our goal is to save you time and surface relevant options.
Simple steps to get started
- Complete a Quick Quote with your business details, funding need and amount.
- Our AI evaluates sector, size, purpose and trading profile to suggest options.
- We introduce you to suitable accredited lenders or brokers for GGS-backed facilities.
- You compare terms, provide documents, and decide whether to progress.
How to strengthen your application
- State a clear use-of-funds and outcome (e.g., +15% covers, +10% ADR, +2% margin).
- Provide up-to-date management accounts and realistic cash flow forecasts.
- Highlight forward bookings, contracts, local demand drivers and reviews.
- Explain mitigation on energy, wage and supply chain risks.
What we won’t do — to keep things clear, fair and not misleading
- We won’t promise guaranteed approval or the lowest rate.
- We won’t suggest the scheme is a grant or that the government repays your loan.
- We won’t hide fees or omit material eligibility conditions set by lenders.
Need a sector-specific route?
If you run a restaurant or food-led venue, see our practical guide to restaurant and hospitality finance options. It covers common facility types, use cases and what lenders expect. You can then submit a Quick Quote for an initial eligibility view.
5) FAQs, compliance and key takeaways (Updated October 2025)
Below are concise answers to common hospitality questions about the Growth Guarantee Scheme. Always check the latest British Business Bank and lender guidance, as details can change. Final decisions rest with participating lenders.
Is hospitality an eligible sector for GGS?
Yes, hospitality is generally eligible across restaurants, pubs, bars, cafés, hotels, venues, contract caterers and leisure. Some restricted sectors are excluded, but hospitality is commonly supported. Lenders still apply full credit and affordability checks.
What are the maximum facility sizes?
In Great Britain, the cap is typically up to £2m per business under the scheme, subject to lender policy and subsidy rules. In Northern Ireland, it is generally up to £1m. Minimum amounts depend on the lender and facility type.
Can start-ups apply?
Lenders usually prefer some trading history, but younger businesses may be considered if there is strong evidence of viability. A detailed plan, realistic forecasts and experienced management are crucial. Early-stage hospitality sites may start with asset finance or smaller working capital lines.
Can I refinance existing debt with a GGS facility?
Refinancing can be eligible where it demonstrably improves your financial position. Lenders will test that overall affordability improves and that the refinancing is sensible. Expect full disclosure of existing agreements and balances.
Will I need to provide a personal guarantee?
Possibly — it’s at lender discretion based on risk and facility size. Under scheme rules, your main home cannot be taken as security. Always review guarantee terms and consider independent advice before committing.
Does the government pay the loan if I can’t?
No. The government guarantee supports the lender, not you, and you remain 100% liable for repayment, interest and fees. Treat a GGS facility like any other commercial borrowing and ensure affordability.
What documents should hospitality firms prepare?
- Accounts, management information and bank statements.
- Cash flow forecasts and evidence of bookings or trading traction.
- Capex schedules and supplier quotes for refurbs or equipment.
Regulatory and advertising compliance
All information here is intended to be clear, fair and not misleading, in line with FCA and ASA principles. Best Business Loans is an independent introducer and not a lender, and this content is not financial advice. You should confirm eligibility, terms, fees and risks with the accredited lender and consider professional advice where appropriate.
Key takeaways for hospitality GGS eligibility
- Most established UK hospitality businesses can be eligible, subject to lender approval.
- Turnover up to £45m, UK trading presence, and a viable plan are typical requirements.
- Use funds for working capital, refits, equipment, technology or sensible refinancing.
- Government guarantee supports the lender; you remain fully liable for the debt.
- Prepare strong financials, clear projections and a measurable improvement plan.
Check your eligibility in minutes
Want to know if your hospitality business could qualify under the Growth Guarantee Scheme? Submit a Quick Quote for an initial matching and eligibility view. There’s no obligation, and we’ll only connect you with relevant, participating finance providers.
About Best Business Loans
BestBusinessLoans.ai helps UK SMEs find suitable commercial finance by matching your profile to a trusted network of lenders and brokers. We do not offer loans directly or provide financial advice. Your enquiry is handled securely and only shared with selected partners who may be able to help.
Important information
Eligibility, rates and fees are set by the lender and depend on your circumstances. Availability of the Growth Guarantee Scheme, facility types and limits are subject to change by the British Business Bank and participating lenders. Always check the most recent guidance before applying.