Last week, the Government announced a £500 million boost to the British Business Bank’s Growth Guarantee Scheme (GGS) for small and medium sized enterprises

Specifically introduced in the face of rapidly changing tariff rates, the scheme aims to help SMEs with cashflow and other finance to mitigate increased business costs. 

This is alongside wider UK Export Finance funding worth £20 billion for small businesses looking to expand to foreign markets.

First launched in July 2024, the GGS provides funding of up to £2 million for small and medium sized enterprises (SMEs) in the UK. 

Offering a 70% Government backed guarantee, the scheme connects SMEs to Government approved lenders, who can provide loans, finance, and other services to eligible businesses. 

The scheme aims to facilitate the growth of small and medium sized businesses that may struggle to access funding through traditional means – something that many hair and beauty businesses struggle with.

What’s more, the beauty industry is uniquely placed to take advantage of the scheme seeing as there are 5000+ beauty brands operating in the UK, 95% of which are SMEs. 

What’s more, according to the Value of Beauty, 25% more beauty SMEs were registered in 2022 in comparison to 2015, five times faster than the number of small businesses formed in the manufacturing industry in the same period. 

In support of small businesses, Business and Trade Secretary Jonathan Reynolds said:

‘Our message to British business is clear – we’ve got your back. This package, backed by the British Business Bank and UKEF, will be a crucial shot in the arm to exporters and small firms looking to trade around the world.’

What’s more, the Growth Guarantee Scheme is piloting a scheme designed to provide additional support to SMEs keen to invest in sustainable assets.

With an increasing number of British beauty businesses expanding into sustainable packaging and ingredient solutions, this could mark further opportunity for industry to access much needed financial support.

In order to be eligible for support under the GGS, businesses must be based in the UK, receive 50% of their income from trading activities, and be within subsidy limits – even after receiving GGS funding. 

To see the full list of eligibility requirements, click here – and to visit the British Business Bank’s GGS FAQs page, click here.

Finally, a list of GGS accredited lenders can be found here.