UK expands Growth Guarantee Scheme to boost SME lending

The UK Treasury announced a major expansion of the British Business Bank’s Growth Guarantee Scheme, aiming to add £2 billion of new SME lending each year and support about 20,000 firms by the 2028‑29 fiscal year. The scheme, which provides a 70% government guarantee on commercial loans up to £2 million, will increase its annual loan coverage from £1.35 billion to roughly £3.35 billion. Treasury minister Rachel Reeves said the change targets the financing gap of £1.6‑4.1 billion that many small firms face. The package also includes £500 million for innovative SMEs and scale‑ups, plus additional support for community lenders, export finance and late‑payment reforms.