British Business Bank Achieves £2.5bn Lending Milestone
Funding | Jul 27, 2025 | British Business Bank Investments Ltd
The British Business Bank has reached a significant milestone with £2.5bn in lending under its Growth Guarantee Scheme, which aims to support UK smaller businesses in accessing finance to invest and grow. A large portion of the lending, 69%, has been directed to regions outside London and the South East, including significant sums provided in the North West, West Midlands, East of England, and Yorkshire & The Humber. The scheme supports various industries, with over £368m for manufacturing, £366m to wholesale and retail, and over £234m to the construction sector. Launched on July 1, 2024, the scheme offers diverse finance products through accredited lenders, with a 70% government-backed guarantee acting as security in case of default. Despite this guarantee, borrowers remain fully liable. Rachel Reeves, Chancellor of the Exchequer, has commented on the scheme's success.
Sectors
- Financial Services
- Manufacturing
- Wholesale and Retail
- Construction
Geography
- United Kingdom – The Growth Guarantee Scheme by the British Business Bank is specifically tailored to support businesses across various UK regions.
- North West England – Among the regions receiving over £200m in lending under the scheme.
- West Midlands – Another key region with significant lending (£200m+) as part of the scheme.
- East of England – Received over £200m, demonstrating the scheme's regional impact.
- Yorkshire & The Humber – This region is also a recipient of over £200m in lending through the scheme.
Industry
- Financial Services – The Growth Guarantee Scheme is a financial initiative by the British Business Bank designed to support access to finance for UK smaller businesses.
- Manufacturing – One of the key sectors receiving substantial funds (£368m) under the Growth Guarantee Scheme.
- Wholesale and Retail – The scheme directed £366m to this sector as part of its financial support efforts.
- Construction – The construction sector received over £234m, highlighting the scheme's broad industry reach.
Financials
- £2.5bn – The total amount of lending reached by the Growth Guarantee Scheme.
- £200m – The minimum amount of lending provided to each of the North West, West Midlands, East of England, and Yorkshire & The Humber regions.
- £368m – Funds directed to the manufacturing sector under the scheme.
- £366m – Funds directed to the wholesale and retail sector.
- £234m – Funds directed to the construction sector.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| British Business Bank | PE Firm | Company | A government-owned business development bank dedicated to making finance markets work better for smaller businesses. |
| Rachel Reeves | Chancellor of the Exchequer | People | As Chancellor, she commented on the success of the Growth Guarantee Scheme. |