Are there options backed by the UK Growth Guarantee Scheme for eligible pubs?

Short answer: Yes — many UK pubs can access finance backed by the Growth Guarantee Scheme

Yes. If your pub is an established UK business and meets lender criteria, there are term loans, asset finance, invoice finance and overdraft-style facilities available backed by the UK Growth Guarantee Scheme (GGS). The scheme provides a government-backed guarantee to accredited lenders, helping viable pubs secure funding for investment and working capital.

The guarantee supports the lender, not the borrower, and your pub remains fully liable for the debt. Interest rates and fees are set by each lender, and affordability, creditworthiness and sector risks are still assessed.

What is the Growth Guarantee Scheme?

The GGS is a British Business Bank programme that replaces the Recovery Loan Scheme. It enables accredited lenders to offer facilities to UK businesses where a government-backed guarantee can help unlock funding.

Facilities can include term loans, asset finance, invoice finance and revolving credit lines. The scheme is available through participating banks, non-bank lenders and specialist asset and invoice financiers.

What can pubs use it for?

Refurbishment, fit-out and upgrades to bar areas, kitchens and customer facilities.
Energy efficiency projects such as boilers, heat pumps, cellar cooling or lighting.
Equipment purchases including cellar systems, commercial kitchens and EPOS.
Working capital to manage seasonal cash flow or supplier payment cycles.
Stock, staffing, marketing and events to grow revenue.

Key facts at a glance

Facilities are delivered by accredited lenders who set pricing and terms.
The guarantee is to the lender, not to your pub — you remain responsible for repayments.
Most established pub operators (Ltd and LLP) can be considered, subject to eligibility.
Use of funds must be for legitimate business purposes in the UK.

How the scheme works for pubs — and what lenders look for

The GGS gives lenders a partial government-backed guarantee (typically up to 70%) on eligible facilities. That support can help viable pubs secure funding where the lender might otherwise decline or offer a lower limit.

Lenders still complete full credit and affordability checks, including cash flow, debt capacity and sector risk. Your pub is on the hook for all repayments, interest and fees throughout the term.

Common facility types for pubs

Term loans: Fixed-sum borrowing for refurbishment, expansion or investments.
Asset finance: Fund equipment and fit-out items with the asset as security.
Invoice finance: Hospitality suppliers and pub groups can release cash tied up in invoices.
Revolving credit/overdraft: Flexibility for short-term cash flow needs.

Typical eligibility checks

UK trading entity, established and viable with evidence of affordability.
Clear funding purpose that benefits UK business activity.
Recent financials, bank statements and management accounts supporting cash flow.
Directors’ and business credit history assessed by the lender.

Costs and pricing — what to expect

Rates and fees are not set by government and vary by provider, facility type and risk. Lenders will price based on sector performance, your trading track record and security.

Expect documentation fees, interest, and sometimes early repayment or variation fees. Always request a total cost of credit illustration and read terms carefully.

Security and personal guarantees

Security requirements differ by lender and product. Asset finance is usually secured on the asset, while term loans may be unsecured or supported by a personal guarantee.

Lenders may ask for personal guarantees; principal private residences should not be taken as security under scheme rules. Guarantees and caps vary — your lender will confirm specifics before you proceed.

How Best Business Loans helps pubs explore GGS-backed options

BestBusinessLoans.ai does not lend or give regulated advice. We help pub operators navigate the market and connect with lenders and brokers who offer suitable solutions, including GGS-backed facilities.

Our AI-led matching and network can save you time, especially when comparing term loans, asset finance, invoice finance or revolving credit. You stay in control and decide which option fits your goals and cash flow.

What to prepare before you apply

Last two years’ accounts or latest management accounts, plus 6–12 months’ bank statements.
Brief business plan or funding rationale outlining the use of funds and expected impact.
Any existing finance agreements and an asset/equipment list if relevant.
Proof of ID and address for directors, and your company details.

Simple steps to get matched

Complete a Quick Quote with your funding need and pub profile.
Our system analyses your details against lender criteria, including GGS availability.
We introduce you to suitable providers for no-obligation conversations.
You compare terms and proceed only if the offer works for your pub.

For pub-specific guidance

Visit our resource for pub business loans and hospitality finance. It explains common products, use cases and what lenders typically need to see.

If you are upgrading kitchens, refurbishing your bar or smoothing cash flow before peak season, we can connect you to relevant providers fast. Submit your Quick Quote for an eligibility check and indicative options.

When a GGS-backed option fits — and alternatives if it doesn’t

GGS-backed facilities often suit pubs investing in refurbishments, equipment or green upgrades with a clear repayment plan. They can also help stabilise working capital during seasonal dips or supplier cost spikes.

If your pub is viable but credit appetite is tight, the lender guarantee may help them support you. Where a pub is in distress or unviable, the scheme will not override affordability or insolvency considerations.

Alternatives and complements to consider

Asset finance: Fund equipment, furniture, cellar tech and EPOS on terms aligned to asset life.
Invoice finance: Useful for brewery groups and suppliers to pubs with trade invoices.
Fit-out finance: Structured funding for refurb projects, often staged alongside contractors.
Cash flow loans: Shorter-term working capital solutions with clear exit plans.
Refinance: Consolidate or restructure existing agreements to improve cash flow.

When a scheme-backed option may be unsuitable

If your requirement is very small or ultra-short term, a standard business overdraft or non-scheme working capital line might be faster or cheaper. If your pub has complex property exposure, a different commercial finance route could be more appropriate.

Our role is to help you compare the options that match your circumstances. We will always make it clear when a solution is not likely to be right for you.

Sustainability and energy upgrade finance

Many pubs prioritise energy savings to manage utility costs and ESG goals. Lenders may offer sustainability-linked terms or asset finance for HVAC, refrigeration, cellar cooling and LED systems.

GGS-backed options can support these projects, subject to affordability and lender policies. Document projected savings if possible — it helps support the credit case.

FAQs: Growth Guarantee Scheme finance for pubs

Is the government guaranteeing my pub’s loan?

No. The guarantee is given to the lender, not to your business. Your pub remains fully liable for all repayments, interest and fees throughout the term.

How much can a pub borrow under the scheme?

Facility limits are set by each accredited lender and depend on your affordability, purpose and risk profile. The scheme has overall caps, but practical limits are driven by your trading and debt capacity.

Are interest rates subsidised?

No. The scheme does not subsidise pricing. Rates and fees are commercial and vary by lender, product type and risk.

Can a leasehold pub apply?

Yes, many successful applicants operate leasehold sites. Lenders focus on viability, performance, cash flow and management capability.

What documents will lenders ask for?

Expect recent financial accounts, bank statements, management information, a funding rationale, and director KYC. Asset details and quotes are needed for equipment and fit-out funding.

Can I refinance existing debt with a GGS-backed loan?

Refinance may be possible, especially where it improves cash flow or supports investment. Lenders will check that the new facility delivers a clear business benefit.

How fast can pubs receive funds?

Timelines vary by lender and complexity. Simple working capital facilities can be arranged in days, while fit-outs and asset deals can take longer due to quotes and valuations.

Do lenders require personal guarantees?

They may. Requirements depend on the lender, facility type and amount. Your principal private residence should not be taken as security under scheme rules.

Are start-ups eligible?

The scheme targets established, viable businesses. Best Business Loans currently supports established companies rather than start-ups or sole traders.

How do I get started?

Complete a Quick Quote with your funding purpose, amount and basic pub details. We’ll match you to suitable lenders or brokers for an eligibility check and no-obligation next steps.

Key takeaways for pub operators

Yes — eligible pubs can access GGS-backed loans, asset finance, invoice finance and revolving credit.
The guarantee supports the lender, not you; your pub remains liable for the debt.
Pricing is commercial and varies; prepare financials and a clear funding rationale.
We connect you with accredited providers who are active in hospitality.
Submit a Quick Quote to explore eligibility and compare options, fast.

Clear, fair and not misleading

Best Business Loans is an independent introducer, not a lender, credit broker or financial adviser. Nothing here is financial advice; eligibility, rates and terms depend on your chosen provider’s assessment and current scheme rules.

Government support does not reduce your repayment obligations. Always read the full terms, risk disclosures and cost illustrations before committing.

Updated: October 2025

Ready to explore options? Submit your Quick Quote for a no-obligation eligibility check and introductions to relevant providers.