How the Growth Guarantee Scheme works
The Growth Guarantee Scheme (GGS) is a UK government scheme, run by the British Business Bank, that helps smaller businesses get finance. Accredited lenders offer term loans, asset finance, overdrafts, invoice finance and asset-based lending, and the government guarantees 70% of each facility to the lender.
The guarantee protects the lender, not the borrower. The business must repay 100% of the debt, so this calculator never reduces your costs for it. The lender decides whether to lend and sets the interest rate and fees. Lenders may take personal guarantees, and the scheme is scheduled to run until 31 March 2030.
Worked example
A business has £600,000 of revenue and £450,000 of operating expenses, so £150,000 of cash flow before debt payments. A £100,000 GGS loan at 8% over 60 months costs £2,027.64 a month, £24,331.67 a year.
The debt service coverage ratio is £150,000 ÷ £24,331.67 = 6.16×. If the business also pays £1,000 a month on other loans, yearly debt payments rise and the ratio falls to 4.13×.
What the ratio means
Debt service coverage compares the cash flow available to pay debts with the debt payments due. Above 1.00× the cash flow covers the payments, and below 1.00× it does not.
The GGS does not set one ratio that approves or declines a loan. Each accredited lender uses its own affordability methods, so treat the ratio as an illustration, not a pass mark.
Borrowing limits and recent changes
The published limit is generally £2 million per business group, counting GGS and Recovery Loan Scheme borrowing since 1 August 2022. Term loans and overdrafts start at £25,001, and asset finance, invoice finance and asset-based lending from £1,000. In Northern Ireland, borrowers within the scope of the Windsor Framework can borrow up to £1 million in most sectors, £285,000 in primary agriculture and £170,000 in fisheries and aquaculture. Being in Northern Ireland does not by itself set the limit, and your lender confirms which applies. England, Scotland and Wales follow the same UK-wide limits.
On 12 July 2026 the Chancellor announced that GGS will support facility terms of up to ten years for term loans and asset finance, that the annual turnover limit rises from £45 million to £54 million, and £6.5 billion more lending over four years. The British Business Bank is working with accredited lenders to bring these in and says the scheme remains fully operational under its existing terms, so not every lender offers them yet.
How much could you borrow
Turning the ratio round gives a ceiling. With £150,000 of cash flow and a target of 1.5× that you set yourself, the highest yearly debt payments are £100,000, which is £8,333.33 a month. At 8% over 60 months, that payment would repay a loan of about £410,987, before fees.
That figure is not lender-approved borrowing. Lenders use their own affordability tests, and the published scheme limit still applies, so the page also shows the largest amount within it.
How this calculator works
Cash flow is revenue less operating expenses. Debt service is the new monthly payment plus existing monthly payments, times 12. The ratio is cash flow divided by debt service. The monthly payment uses the standard fixed-rate formula.
Real lenders look at many more things, such as profit after tax, seasonality, security and the business's history. This tool uses the simplified figures you enter. This is an independent tool, not run or endorsed by the British Business Bank or the UK government, and it does not tell you whether you will be approved. To find a lender, use the British Business Bank's official list of accredited lenders, which you can filter by region and type of finance.
For a general loan, use the loan affordability calculator.
To check the scheme criteria, use the GGS eligibility checker.
See also how to apply for a GGS loan.
Inputs for the GGS loan affordability calculator
Where is the business based?
England, Scotland and Wales share the same limits. Choose Northern Ireland to apply its separate limits.
Northern Ireland borrower type
Shown for Northern Ireland only. The limit depends on whether the borrower falls within the Windsor Framework rules and on its sector.
Yearly business revenue
Total sales for a year, before costs.
Yearly operating expenses
Running costs for a year, before any loan payments.
Existing loan payments each month
What you already pay each month on other business loans.
Proposed GGS loan amount
The loan amount before any fees.
Existing GGS and RLS borrowing
GGS or Recovery Loan Scheme borrowing your business group already has. It counts towards the limit, so only the headroom is left.
Coverage you want to keep
Your own target for cash flow divided by debt payments, such as 1.5×. It is not a lender or GGS requirement. The estimate of the largest loan uses it.
Interest rate (nominal, not APR)
The annual interest rate before monthly compounding. Lenders set the rate, so enter the rate from your quote.
Term
How many monthly payments, from 3 to 120. Terms over 72 months depend on your lender.
Fees
Enter any lender arrangement fee, broker fee and other upfront charges, then say how they are paid: separately, added to the loan or deducted from it.
CALCULATOR QUESTIONS
GGS loan affordability calculator questions
What is the Growth Guarantee Scheme?
A UK government-backed scheme where the government guarantees 70% of a business facility to the lender. The British Business Bank runs it.
Do I repay the guaranteed part?
Yes. The business is liable for the whole debt. The guarantee protects the lender, so it does not reduce what you owe.
What debt service coverage ratio do I need?
The scheme sets no single minimum. Each lender uses its own affordability test, so ask your lender.
Does a higher ratio mean I will be approved?
No. It shows how well the cash flow covers payments, but lenders decide on many factors.
Who sets the interest rate?
The lender. Rates and fees vary, so compare offers from accredited lenders.
Does the calculator tell me if I'll be approved?
No. It shows how an amount sits against the published scheme limits. Accredited lenders decide whether to lend.
How do I apply?
Through an accredited lender. The British Business Bank website lists them and lets you filter by region and type of finance.