The Federation of Small Businesses has welcomed the launch of the Growth Guarantee Scheme administered by the British Business Bank. This scheme aims to support small firms in investing in a borrowing environment hindered by high interest rates, providing much-needed finance to start-ups and scale-ups. FSB National Chair Martin McTague stated that the scheme will help small firms obtain the funding necessary to achieve their dreams. The scheme is set to run until March 2026, with the goal of supporting 11,000 small businesses. Currently, 41 lenders have signed up, with 20 already accepting applications.
McTague highlighted the challenges small firms face in borrowing due to high interest rates and lenders’ reluctance to extend finance to riskier ventures. He emphasized the need for corrective action to address the over-application of personal guarantees and the potential impact of the removal of the SME Supporting Factor on small firms’ access to funding. The Growth Guarantee Scheme is seen as a critical component in the funding landscape for small firms, essential for economic recovery in the UK.
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