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Posted: Sun 13th Apr 2025
The government has allocated an extra £500m to the Growth Guarantee Scheme to help businesses impacted by the introduction of 10% tariffs on goods imported into the US.
Created as a successor to the Recovery Loan Scheme which was set up in 2021 to support businesses in dealing with the COVID-19 pandemic, the Growth Guarantee Scheme helps small companies secure funding with a government guarantee that covers up to 70% of the loan amount. Firms remain 100% liable for the debt.
Businesses can apply for up to £2m or £1m for borrowers covered by the Northern Ireland Protocol. The additional funding is to support term loans, overdrafts and other products that help tackle cashflow challenges and working capital requirements caused by the introduction of the tariffs.
Businesses can apply for the funding via the British Business Bank's 49 accredited lenders. Applicants must be able to afford to take out debt finance.
Reinald de Monchy, co-chief banking officer at the British Business Bank, said:
"The Growth Guarantee Scheme and its predecessors have proven themselves to be an important means of supporting smaller UK businesses over the last 40 years.
"The Growth Guarantee Scheme can be used counter-cyclically, enabling smaller businesses to obtain funding during times of uncertainty such as we are experiencing currently. It is therefore important and necessary to see additional capacity made available to support smaller UK businesses at this time."
The government also announced a £20 billion expansion in the support offered to exporting businesses by UK Export Finance (UKEF), with up to £10 billion for firms affected by the new tariffs.
The increase raises UKEF's lending capacity to £80 billion.
President Trump's new 10% tariffs were introduced across the world on 5 April. Higher tariffs were originally due to come in force on 9 April for several other countries, not including the UK, but they have now been postponed for 90 days. Separate tariffs of 25% are in place on imports of steel, aluminium and cars.
Some countries have imposed reciprocal tariffs on the US, but the UK has yet to act. The government has asked business owners to share their views on whether the UK should retaliate.
We're tracking the reaction of small business owners to the new trade tariffs here. If you'd like to share your views, email Dan.
