The British Business Bank has made a significant impact by delivering over £368 million in funding to the UK manufacturing sector through its Growth Guarantee Scheme, which kicked off in July 2024. This achievement is part of a larger effort, with a total of £2.5 billion lent to smaller UK businesses across more than 20 different sectors.
More than 1,900 manufacturing companies have taken advantage of this scheme, aimed at enhancing access to finance, driving growth, and creating jobs. It plays a key role in the UK Government’s broader strategy to invigorate regional economies and encourage innovation.
This announcement comes on the heels of the Government launching the £4 billion British Business Bank Industrial Strategy Growth Capital programme. This initiative is set to support eight priority sectors within the UK’s Industrial Strategy, including manufacturing, by leveraging existing delivery capabilities.
So far, the Growth Guarantee Scheme has allocated:
- Over £440 million to the construction and real estate sectors
- More than £366 million to wholesale and retail businesses
- £200 million to professional services firms
Out of the total £2.5 billion lent, £630 million (27%) has gone to companies that are under five years old, showcasing a strong commitment to supporting start-ups and scale-ups. Interestingly, 16% of all loans have been directed towards the manufacturing sector.
Additionally, 69% of the lending has benefited firms located outside of London and the South East, with notable investments in the North West, West Midlands, East of England, and Yorkshire & the Humber—each receiving over £200 million in loans.
The scheme offers a variety of finance products through more than 50 accredited lenders, including term loans, overdrafts, asset finance, invoice finance, and asset-based lending. Businesses can access loans of up to £2 million, backed by a 70% government guarantee, although they remain fully responsible for the debt.
Detect AI-generated content and transform it into something that feels more human with our AI Content Detector. Just paste your text, and you'll get accurate, relatable results in no time!
Here’s the text we’re looking at: Government and Industry Commentary
Rachel Reeves, the Chancellor of the Exchequer, shared her thoughts:
“The Growth Guarantee Scheme has significantly impacted our regional economies, enabling smaller businesses throughout the UK to invest and expand, which in turn creates jobs and puts more money in people's pockets.”
Gareth Thomas, the Minister for Small Business, added his perspective:
“As part of our Plan for Change, we’re dedicated to dismantling the obstacles that SMEs encounter when starting out and scaling up. This is a crucial milestone for the Growth Guarantee Scheme, which is vital for achieving our goals.”
Reinald de Monchy, Chief Banking Officer at the British Business Bank, pointed out:
“This milestone showcases the efforts of our 50+ delivery partners since the scheme began. Manufacturing is at the forefront of utilizing this support and driving economic growth across the UK.”
Seamus Nevin, Chief Economist at Make UK, commented:
“Many manufacturers find it tough to secure the financing they need. This scheme has been essential in helping smaller manufacturers invest, grow, and create high-value jobs. Ongoing support will be crucial for the UK’s competitiveness in advanced manufacturing on a global scale.”
Stefan Wolvaardt, CFO of Simply Asset Finance, expressed:
“With our ambitious growth targets, additional government funding was crucial. We’re proud to back the scheme and help UK SMEs reach their full potential.”
Phil Hughes, Deputy Managing Director of SME Lending at Paragon Bank, shared:
“The Growth Guarantee Scheme has enabled us to offer customized funding to ambitious businesses, especially in sectors where upfront costs can be a challenge. The demand and results have been impressive.”
Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), remarked:
“FSB advocated for this scheme and is thrilled to see its real-world impact. It’s heartening to witness funding being distributed widely across UK regions, assisting small firms in unlocking growth and creating jobs within their communities.”
Table 1: Drawn by Region
| Region | Drawn value (£m) | % Value | Number of facilities | Number of facilities per 10,000 SMEs** |
| East Midlands | 171.30 | 7% | 918 | 30.5 |
| East of England | 221.15 | 9% | 1,261 | 27.11 |
| London | 422.47 | 18% | 2,222 | 24.93 |
| North East | 79.07 | 3% | 438 | 30.77 |
| North West | 272.39 | 12% | 1,495 | 34.63 |
| Northern Ireland | 38.97 | 2% | 145 | 12.77 |
| Scotland | 127.05 | 5% | 766 | 24.77 |
| South East | 309.02 | 13% | 1,845 | 22.91 |
| South West | 188.69 | 8% | 1,056 | 22.38 |
| Wales | 82.92 | 4% | 497 | 25.74 |
| West Midlands | 231.28 | 10% | 1,253 | 33.76 |
| Yorkshire and The Humber | 202.15 | 9% | 1,052 | 31.92 |
| Unspecified* | 7.80 | 0% | 41 |
**The data for ‘Number of facilities per 10,000 SMEs’ is a calculation utilising data sourced from Business population estimates 2023 – GOV.UK (www.gov.uk).
Table 2: Drawn by Sector
| SIC Group | Drawn value (£m) | % Value | Number of facilities |
| Accommodation and food service activities | 135.24 | 6% | 936 |
| Activities of households as employers; undifferentiated goods-and services-producing activities of households for own use | 0.20 | 0% | 3 |
| Administrative and support service activities | 227.99 | 10% | 1,424 |
| Agriculture, forestry and fishing | 37.86 | 2% | 366 |
| Arts, entertainment and recreation | 54.63 | 2% | 387 |
| Construction | 234.20 | 10% | 1,699 |
| Education | 26.40 | 1% | 232 |
| Electricity, gas, steam and air conditioning supply | 3.13 | 0% | 20 |
| Financial and insurance activities | 77.37 | 3% | 290 |
| Human health and social work activities | 91.48 | 4% | 628 |
| Information and communication | 110.63 | 5% | 695 |
| Manufacturing | 368.29 | 16% | 1,905 |
| Mining and quarrying | 10.73 | 0% | 45 |
| Other service activities | 56.13 | 2% | 519 |
| Professional, scientific and technical activities | 201.68 | 9% | 1,247 |
| Public administration and defence; compulsory social security | 1.52 | 0% | 11 |
| Real estate activities | 207.60 | 9% | 694 |
| Transportation and storage | 105.76 | 4% | 938 |
| Water supply; sewerage, waste management and remediation activities | 36.87 | 2% | 186 |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | 366.57 | 16% | 2,602 |
| Grand Total | 2,354.27 | 14,827 |
Table 3: Drawn by Facility Type
| Scheme Facility Type | Drawn value (£m) | Number of facilities | % Value |
| Business term loan | 1,730.00 | 10,955 | 73% |
| Asset finance | 553.31 | 3,584 | 24% |
| Invoice finance | 63.66 | 277 | 3% |
| Revolving credit | 7.30 | 11 | 0% |
| Grand Total | 2,354.27 | 14,827 |
Table 4: Drawn by Business Age
| Age of Business | Drawn value (£m) | No. facilities | % Value |
| Less than 1 year | 194.30 | 837 | 8% |
| 1 to 4 years | 439.38 | 3,132 | 19% |
| 5 to 9 years | 562.30 | 4,370 | 24% |
| 10 to 14 years | 418.04 | 2,713 | 18% |
| 15 to 24 years | 441.43 | 2,450 | 19% |
| 25 to 49 years | 243.25 | 1076 | 10% |
| 50 years or more | 55.57 | 249 | 2% |
| Grand Total | 2,354.27 | 14,827 |
