Following on from the recent US tariffs, the British Business Bank has bolstered its Growth Guarantee Scheme (GGS), a scheme designed to provide smaller businesses with access to finance, enabling them to invest and grow despite economic disruptions.
On April 13, 2025, chancellor Rachel Reeves announced an additional £500 million in lending capacity for the scheme. This extra funding aims to support businesses facing cash flow issues due to changes in global tariff rates, offering a lifeline to those struggling to navigate the new economic landscape.
Supporting the scheme is hybrid lender-broker Compass Business Finance. As an accredited lender, the company believes it is well placed to help its clients leverage the benefits of the scheme. Compass can deliver funding with GGS support to UK SMEs, ensuring that they have access to the necessary financial resources to overcome challenges and invest in their growth.
With the enhanced support from the GGS, Compass can now provide funding to businesses that might have previously been seen as too high-risk or offer more favourable terms. This helps companies manage cash flow disruptions caused by US tariffs, ensuring continuity of operations. The scheme also supports investment in growth, enabling SMEs to finance new technologies, expansion, and sustainable assets—critical steps for maintaining competitiveness and building long-term resilience in a challenging economic environment.
The additional funding for the GGS from the British Business Bank is a significant step towards supporting UK businesses affected by the US tariffs, according to Compass. With its customer-first approach and industry expertise, Compass said its enhanced access to finance, improved cash flow management, and opportunities for investment in growth, will help businesses face adversity and pursue new opportunities.