What is the Growth Guarantee Scheme and can my healthcare business qualify?

Quick answer — what the Growth Guarantee Scheme is and who it’s for

The Growth Guarantee Scheme (GGS) is a UK government-backed initiative delivered by the British Business Bank that encourages accredited lenders to fund viable SMEs by providing a partial guarantee to those lenders. It can support term loans, overdrafts, asset finance and invoice finance typically up to £2 million per business, with the government guaranteeing a portion of the lender’s risk. It is not a grant, and you remain 100% liable for the debt, interest and fees.

Healthcare businesses — including care homes, dental practices, pharmacies, private clinics, veterinary practices, medical laboratories and social care providers — may qualify if they are UK-based, have a viable business proposition, and meet the lender’s assessment criteria. Lenders set pricing and terms, and may require security or personal guarantees; your home cannot be taken as security.

Best Business Loans does not issue finance. We use data-led matching to help you explore suitable providers who participate in the GGS or offer alternative funding. You can submit a no-obligation Quick Quote to check potential eligibility and next steps.

How the Growth Guarantee Scheme works

The government provides a guarantee to the accredited lender, usually covering up to 70% of the outstanding balance if the borrower defaults, after the lender’s normal recovery processes. This guarantee supports lender appetite but does not reduce your liability; you must repay the full amount due.

GGS-backed facilities are available through participating banks, non-bank lenders and asset finance providers. Each provider applies its own credit policy, pricing and documentation requirements, subject to British Business Bank rules.

Typical facility types and terms

• Term loans: Funding for investment, expansion or refinancing, typically over 1–6 years.
• Overdrafts/revolving credit: Working capital lines, typically up to 3 years.
• Asset finance: Hire purchase or leasing of equipment and vehicles, typically over 1–6 years.
• Invoice finance: Advances against B2B receivables, revolving facilities typically up to 3 years.

Exact amounts, fees and rates vary by lender and your profile. The scheme is designed to stimulate lending to viable SMEs, not to subsidise uneconomic borrowing.

Can my healthcare business qualify? The core and sector-specific criteria

In general, healthcare operators can be strong candidates for GGS-backed funding because lenders value recurring revenue, essential services, and tangible assets. However, eligibility is always assessed case by case, and lenders may apply additional sector checks.

Core scheme eligibility (typical)

• UK-based SME: Trading and generating at least 50% of revenue in the UK, with group turnover usually up to £45 million.
• Viability: A viable business proposition based on historical and/or projected performance, with credible cash flow to service debt.
• Purpose: Business purposes in the UK, including growth, investment or working capital; not speculative personal use.
• Non-excluded sectors: Most healthcare businesses are eligible, but lenders will confirm any exceptions under scheme rules.
• Subsidy and legal checks: Borrowing must comply with UK Subsidy Control requirements and standard legal/AML checks.

The above points summarise common parameters used around the scheme; lenders retain discretion to apply additional policies. Prior borrowing under past schemes does not automatically disqualify you, but lenders will consider your total facilities and affordability.

Healthcare-specific lender checks (what to expect)

• Care homes and supported living: Occupancy levels, fee mix (private vs local authority), CQC ratings, staffing costs, energy costs and property tenure.
• Dental practices: UDAs/UDCs, private plan income, chair utilisation, clinician mix, capex needs and compliance with GDC/CQC standards.
• Pharmacies: Script volume trends, NHS contractual income, OTC retail mix, wholesaler terms and gross margins.
• Clinics and diagnostics: Referral sources, payor mix (NHS vs private insurance/self-pay), equipment lifecycle and quality accreditations.
• Veterinary practices: Client base stability, average transaction value, branch performance and RCVS accreditation.
• Financial metrics: EBITDA and debt service cover, net asset base, debtor/creditor days, and headroom under stress scenarios.

Lenders may require security or personal guarantees. Requirements vary by facility size, structure and asset coverage; your principal private residence cannot be taken as security.

What counts in your favour

• Consistent NHS or commissioned income, robust private pay demand, and good regulatory ratings.
• Demonstrable cash flow resilience and contingency planning for staffing, locum or energy cost spikes.
• Clear use of funds that improves capacity, compliance, efficiency or patient outcomes.

What can healthcare businesses use GGS funding for?

The Growth Guarantee Scheme can support a range of business purposes that drive resilience and growth. Lenders will ask how the funds improve cash flow, quality of care, compliance or operational capacity.

Common healthcare use cases

• Equipment and technology: Imaging diagnostics, dental chairs, pharmacy automation, telehealth platforms and clinical IT upgrades.
• Refurbishment and fit-out: CQC compliance works, infection control improvements, energy efficiency upgrades and accessibility enhancements.
• Working capital: Managing delayed reimbursements, hiring clinicians, seasonal staffing, and bridging timing gaps in NHS/private payments.
• Expansion and acquisitions: Opening new treatment rooms, adding branches, or acquiring a complementary practice.
• Vehicles and logistics: Community care transport, mobile clinics or pharmaceutical delivery fleets.

Healthcare operators often combine funding types — for example, using asset finance for equipment and a term loan for wider refurbishment. GGS can sit alongside commercial facilities from the same or different providers, subject to lender consent.

Advantages and key considerations

• Potential advantages: Wider lender appetite, competitive terms based on risk, and flexibility across multiple facility types.
• Key considerations: Personal guarantees may be required; rates and fees are set by the lender; you remain fully liable for repayment.
• Suitability: Not a subsidy or grant; projects should be financially sensible with a realistic payback period.

If your circumstances do not fit GGS, lenders may still offer funding outside the scheme. You can also explore targeted sector options and alternatives such as invoice finance, asset finance or unsecured commercial loans.

Explore sector-specific options

For a deeper look at funding choices tailored to clinics, care, dental, pharma and more, see our page on healthcare business loans. It outlines practical routes including fit-out finance, equipment leasing and cash flow solutions.

Best Business Loans helps you compare these pathways and connect with providers actively lending in healthcare. Submit a Quick Quote for a free, no-obligation eligibility check.

How to check eligibility and get matched via Best Business Loans

We streamline your journey by matching your profile with lenders most likely to support your healthcare goals. Our service is free to use, with no obligation to proceed.

Fast, transparent process

1. Complete a Quick Quote: Tell us who you are, how much you need and what the funding is for.
2. Smart matching: Our system analyses your details against scheme criteria and lender policies.
3. Introductions: We’ll connect you with suitable lenders or brokers who can discuss indicative terms.
4. Your decision: Compare options, ask questions and choose if and when to proceed.

This saves time versus cold approaches, especially in healthcare where sector nuances matter. It also reduces the risk of multiple unnecessary credit searches.

What information lenders may request

• Last two years’ filed accounts and recent management accounts.
• Business bank statements (typically 6–12 months).
• Aged debtors/creditors, key contracts and top payors.
• For care: occupancy and fee mix; for dental: UDAs/private plan data; for pharmacy: script volume and NHS statements.
• CQC/RCVS compliance, insurance details, asset lists and ID/AML documents.

Be ready to explain how the funding improves resilience, patient care and financial performance. A concise plan with costs, milestones and expected benefits can strengthen your case.

Timelines and expectations

• Indicative feedback: Often within 24–72 hours after initial details are reviewed.
• Credit approval: From a few days to a few weeks depending on complexity, security and valuation requirements.
• Drawdown: Straightforward working capital can be quick; asset-backed or acquisition finance may take longer.

There is no guarantee of approval. Final decisions, pricing and terms rest with the lender and are subject to full underwriting, affordability and scheme rules.

FAQs, key takeaways and important notices

Below are common questions we receive from healthcare operators exploring GGS-backed facilities. Always seek personalised terms from a lender before making commitments.

Frequently asked questions

Is the Growth Guarantee Scheme a grant?
No. It is not a grant or free money. The government gives a partial guarantee to the lender, and you remain liable for 100% of the debt, interest and fees.

What is the maximum facility I can get?
Many lenders offer up to £2 million per business under the scheme, subject to status, affordability and scheme parameters. Individual caps differ by product, provider and group exposure.

Do I need to provide security or a personal guarantee?
Security and personal guarantees are at the lender’s discretion and depend on the facility size and risk. Your principal private residence cannot be taken as security under the scheme.

Can start-ups use the scheme?
The scheme is aimed at viable SMEs. Some lenders require trading history; others may consider early-stage businesses with strong contracts or assets. Best Business Loans currently focuses on established UK companies, not start-ups or sole traders.

Can I refinance existing borrowing?
Refinancing may be possible when it enhances viability — for example, consolidating more expensive debt or aligning repayments to cash flow. Lenders will test affordability and purpose.

Which products are available to healthcare firms?
Term loans, overdrafts, asset finance and invoice finance exist under the scheme with typical terms up to 6 years for term and asset finance, and up to 3 years for revolving facilities. Product availability varies by lender.

Key takeaways

• GGS is a government-backed guarantee to lenders, helping viable SMEs access finance; it is not a grant.
• Healthcare businesses with strong fundamentals and compliant operations are well-placed to qualify.
• Facility types include term loans, overdrafts, asset finance and invoice finance with typical terms up to 6 years.
• Security and personal guarantees may be required; your home cannot be used as security.
• Best Business Loans can match you to suitable providers for a free, no-obligation eligibility check.

Important information and compliance

Best Business Loans is an independent introducer. We do not provide loans, give financial advice, or make lending decisions. Any examples on this page are for information only and are not recommendations.

All finance is subject to status, affordability, credit checks, lender criteria and the applicable scheme rules. Rates and fees are set by lenders and will vary. Please request a personalised illustration before you decide to proceed.

We aim for communications that are clear, fair and not misleading, in line with FCA and ASA guidance. The Growth Guarantee Scheme is administered by the British Business Bank; see official information here: British Business Bank. Last updated: October 2025.

Get Your Free Quick Quote to check potential eligibility for GGS-backed facilities or suitable alternatives for your healthcare organisation.