The British Business Bank has released the latest performance data for the Growth Guarantee Scheme (GGS) as at 30 September 2025. The report provides a comprehensive breakdown of facility status across all participating lenders, revealing how the scheme continues to support UK smaller businesses with access to finance. Here is what the data tells us.
Overall GGS Performance
Since its launch (originally as the Recovery Loan Scheme iteration 3 in August 2022), the GGS has delivered £2.89 billion in financing to UK smaller businesses. Of this, £1.98 billion has reached businesses outside London and the South-East, demonstrating the scheme's commitment to supporting regional economies.
The scheme is supported by a diverse network of more than 70 lenders, each playing a vital role in delivering capital to businesses with turnover up to £45 million. The Government provides a 70% guarantee to lenders, while borrowers remain 100% liable for the debt.
In April 2025, the Chancellor announced an additional £500 million in lending capacity to support businesses facing cashflow challenges due to global tariff changes. Most significantly, the 2025 Spending Review extended the scheme until 31 March 2030, providing long-term certainty for businesses and lenders.
Breakdown of Facilities Drawn and Settled
As at 30 September 2025, the following lenders have deployed the most capital through the scheme:
| Lender name | Drawn value (£m) | Number of facilities | Settled value (£m) | Settled number |
|---|---|---|---|---|
| Funding Circle | 459.18 | 5,799 | 15.84 | 325 |
| HSBC UK Bank Plc | 406.01 | 1,281 | 2.47 | 32 |
| Close Brothers Ltd | 368.34 | 1,752 | 5.39 | 65 |
| Simply Asset Finance Operations | 168.66 | 1,304 | 2.55 | 64 |
| Allica Bank Limited | 185.26 | 694 | 0.16 | 3 |
| Atom Bank plc | 182.05 | 313 | - | - |
| Barclays Bank Plc | 121.07 | 235 | - | - |
| Lloyds Bank Plc | 83.51 | 315 | 0.84 | 3 |
| NatWest Group plc | 83.40 | 389 | 0.17 | 3 |
| Arbuthnot Latham & Co Ltd | 73.77 | 68 | - | - |
Funding Circle leads the charge with £459.18 million drawn across 5,799 facilities, demonstrating the platform's significant reach into the SME market. Traditional high street banks like HSBC, Barclays, and Lloyds have also deployed substantial capital, while specialist lenders like Close Brothers and Allica Bank have captured meaningful market share.
Drawn vs Settled: The Settlement Story
One of the most telling statistics in the report is the settlement rate. Of the £2.89 billion drawn, only £41.4 million has been settled (repaid in full) across 669 facilities. This represents a settlement rate of just 1.4%.
This low settlement figure is not a cause for concern -it actually reflects the scheme's success. Most loans are still in the active repayment phase, meaning businesses are meeting their obligations and lenders are receiving regular payments. The scheme was designed to support businesses through periods of uncertainty, and the data shows that most borrowers are successfully managing their debt.
Lenders with the highest settled amounts include:
What This Means for Brokers and Businesses
For brokers introducing clients to the GGS, this data underscores several key points:
Lender Diversity: With 70+ lenders participating, there is no single best option. Different lenders specialise in different facility types, sectors, and business sizes. Understanding each lender's appetite and criteria is essential for successful introductions.
Proven Track Record: The £2.89 billion deployed and the low default rate (implied by the low settlement rate relative to the large drawn amount) demonstrate that the scheme is working as intended. Businesses are accessing finance and managing their repayment obligations.
Regional Impact: The fact that £1.98 billion (68%) has reached businesses outside London and the South-East shows that the scheme is genuinely supporting regional economies, not just concentrating capital in the South-East.
Long-Term Stability: The extension to 2030 provides certainty. Brokers can confidently recommend the GGS to clients knowing the scheme will be available for years to come.
The Broader Context
The GGS builds on the success of the first two iterations of the Recovery Loan Scheme, which collectively delivered £4.33 billion in finance to UK businesses. Combined, the entire recovery and growth guarantee ecosystem has now provided over £7 billion to UK smaller businesses since 2022.
This represents a significant intervention in the SME lending market, particularly for businesses that might otherwise struggle to access unsecured finance. The scheme has proven especially valuable for businesses facing temporary cashflow challenges, seasonal fluctuations, or those investing in growth during uncertain economic times.
Looking Ahead
With the scheme now extended to 2030 and additional lending capacity announced, the GGS is positioned to continue supporting UK business growth. For brokers, this means:
If you are considering the GGS for your clients, the September 2025 data confirms that the scheme is delivering real results. Businesses are accessing capital, managing their debt, and using the funds to invest and grow.
For more information on how Paxford Finance can help you introduce clients to the GGS, or to discuss your brokerage commission structure, contact our team at [email protected] or call 0333 0506 285.
Learn More About the GGS
Should you need more detailed information on the Growth Guarantee Scheme, including sector breakdowns, facility types, and regional distribution, visit the British Business Bank for the full performance report.