Growth Guarantee Scheme secures £200m for smaller businesses in Scotland

The Growth Guarantee Scheme, launched in 2024, is a government-backed programme that helps smaller businesses access debt finance. The funding has been delivered through 32 lenders, including independent Scottish providers, and is supporting businesses to invest, grow and cover day-to-day costs.

More than 1,200 smaller businesses across Scotland have secured loans through the British Business Bank’s Growth Guarantee Scheme, with total lending now passing £200m. 

West Central Scotland has secured the highest value of lending, with £65.3m across 367 loans. Glasgow City leads among local areas with £33.8m, followed by the City of Edinburgh at £20.4m and Aberdeen City and Aberdeenshire at £18.5m. 

The figures show businesses outside the central belt are also making strong use of the scheme, with the Highlands and Islands receiving £16m and Inverclyde, East Renfrewshire and Renfrewshire receiving £15.2m. 

A regional breakdown shows where lending has been strongest: 

Region	Loan value
West Central Scotland	£65.3m
East Central Scotland	£42.2m
Southern Scotland	£32.2m
Eastern Scotland	£26.3m
North Eastern Scotland	£18.5m
Highlands and Islands	£16.0m
Grand total	£200.4m

Wholesale and retail businesses received the largest share of finance by sector, at £30.9m. Administrative and support services, manufacturing, real estate and construction also featured among the top sectors supported. 

Driving growth in small business 

Businesses are most commonly using the finance to buy or hire equipment and machinery, grow existing operations in the UK, and support working capital needs. 

One of those businesses is Cross Group Aberfeldy, a Perthshire family business that began in 2018. The company has since grown to 40 staff and expanded into four divisions. Through the scheme, it’s been able to invest in new and used equipment, including dumpers and commercial vans. 

Kevin Cross, Managing Director of Cross Group Aberfeldy, said the support has also helped rural business manage seasonal peaks and troughs while continuing to grow. 

For more about the British Business Bank and the Growth Guarantee Scheme, visit www.british-business-bank.co.uk.