The British Business Bank’s Growth Guarantee Scheme unlocks £200m for SMEs across Scotland
The British Business Bank has reached a landmark milestone by unlocking £200m of debt finance for smaller businesses across Scotland under its Growth Guarantee Scheme.
1,283 Scottish businesses have benefited from the finance, delivered through 32 lenders operating throughout Scotland, including a number of independent Scottish lenders. This finance is helping drive growth in local economies across the nation.
By volume and value of loans, the most active region of Scotland is revealed as West Central Scotland, which has secured the most finance of £65.3m via 367 loans, followed by East Central Scotland with £42.2m loan value, and Southern Scotland with £32.2m.
While Glasgow City (£33.8m) and City of Edinburgh (£20.4m) lead the pack amongst Scotland’s cities, it’s not all about the central belt. Aberdeen City and Aberdeenshire comes in third with £18.5m in lending, followed by the Highlands and Islands on £16m. Inverclyde, East Renfrewshire and Renfrewshire completes the top five localities on £15.2m, demonstrating that entrepreneurial talent is thriving across rural as well as urban areas.
Regarding business sectors, in the lead is the wholesale and retail trade; repair of motor vehicles and motorcycles, which received £30.9m of finance. This is followed by administrative and support service activities (£23.3m), manufacturing (£20.5m), real estate (£17.9m) and construction (£17.8m), demonstrating that Scotland retains core industries while embracing new sectors.
Looking at what smaller businesses across Scotland are using their finance for, analysis of the British Business Bank’s Growth Guarantee Scheme data reveals the top three uses are purchasing and hiring of specific equipment and machinery (£59.9m), expanding an existing business within the UK (£46.3m) and general working capital requirements (£37.5m).
Scottish secretary Douglas Alexander, said: “The British Business Bank’s Growth Guarantee Scheme unlocking £200m for small businesses in Scotland is a significant milestone and a real demonstration of the UK government’s commitment to supporting Scottish enterprise.
“From the Highlands to the Central Belt and Scottish borders, businesses across Scotland are accessing the finance they need to grow, create jobs and boost our economy. This funding backs Scottish ambition and helps drive economic growth to benefit communities across the country.”
Blair McDougall, minister for small business and economic transformation, said: “This is an important milestone, demonstrating this government’s commitment to improving access to finance for smaller businesses right across Scotland.
“By unlocking vital funding, we are ensuring that Scotland’s most ambitious and innovative firms have the finance they need to invest and grow, creating jobs, boosting their local economies and raising living standards.”
Reinald de Monchy, chief banking officer, British Business Bank said: “Reaching this £200m lending milestone for the Growth Guarantee Scheme in Scotland is a significant achievement. It is also a clear sign of the strength and ambition of Scotland’s smaller businesses and our delivery partners in Scotland. This funding is helping Scottish firms invest, innovate and grow, and we’re proud to see the scheme making such a tangible difference across the country.”
Perthshire construction business scaling up and providing jobs
One small business in Scotland that is utilising the Growth Guarantee Scheme to unlock its potential is Cross Group Aberfeldy, a family business that was founded in 2018 with ‘two diggers and a dream’ as Cross Civils & Construction.
Thanks to its industry expertise and commitment to delivering high-quality service, the business has grown to 40 staff and has expanded to four divisions, as well as offering machinery hire.
Cross Civils used its Growth Guarantee Scheme facility, provided through British Business Bank delivery partner Simply Asset Finance, to diversify by purchasing new and used essential equipment, from dumpers to commercial vans.
Kevin Cross, managing director, Cross Group Aberfeldy, said: “As a rural family business we live and breathe our business on a day-to-day basis. There are never two days the same with peaks and troughs throughout the year.
“What we have found in dealing with Simply is a finance partner that understands our business from the ground up, who know how best to support our growth ambitions, they understand the local economy and they understand the challenges in the market because they are supporting SMEs like our across various sector’s gaining a valuable insight to the real challenges for SME businesses. Their industry knowledge, flexible solutions and can-do approach to business is second to none.
“As we continue to grow our business, we take great comfort from having our partner Simply Asset Finance to help deliver future success for many years to come.”
Full dataset for the Growth Guarantee Scheme’s performance in Scotland (figures as of 27 April 2026):
Region | Volume of loans | Total loan value |
West Central Scotland | 367 | £65,343,616.40 |
East Central Scotland | 259 | £42,194,136.14 |
Southern Scotland | 225 | £32,200,928.39 |
Eastern Scotland | 192 | £26,254,496.18 |
North Eastern Scotland | 120 | £18,452,539.75 |
Highlands and Islands | 120 | £15,985,080.67 |
Grand Total | 1,283 | £200,430,797.53 |
Sub-regional area | Volume of loans | Total loan value |
Glasgow City | 171 | £33,828,381.15 |
City of Edinburgh | 137 | £20,424,708.96 |
Aberdeen City and Aberdeenshire | 120 | £18,452,539.75 |
Highlands and Islands | 120 | £15,985,080.67 |
Inverclyde, East Renfrewshire, and Renfrewshire | 73 | £15,176,396.42 |
South Lanarkshire | 76 | £13,384,037.18 |
North Lanarkshire | 86 | £12,649,925.90 |
Clackmannanshire and Fife | 78 | £10,727,073.05 |
East Lothian and Midlothian | 58 | £9,722,574.54 |
Falkirk | 40 | £9,051,400.97 |
Perth and Kinross, and Stirling | 61 | £7,843,605.64 |
Angus and Dundee City | 53 | £7,683,817.49 |
South Ayrshire | 38 | £5,993,524.69 |
Dumfries and Galloway | 44 | £5,291,796.86 |
North Ayrshire and East Ayrshire | 40 | £4,781,282.02 |
East Dunbartonshire and West Dunbartonshire | 37 | £3,688,912.93 |
West Lothian | 24 | £2,995,451.67 |
Scottish Borders | 27 | £2,750,287.64 |
Grand Total | 1,283 | £200,430,797.53 |
Sector (SIC Group) | Volume of loans | Total loan value |
G – Wholesale and retail trade; repair of motor vehicles and motorcycles | 216 | £30,880,589.40 |
N – Administrative and support service activities | 123 | £23,265,888.73 |
C – Manufacturing | 121 | £20,467,818.91 |
L – Real estate activities | 55 | £17,871,626.06 |
F – Construction | 140 | £17,832,696.60 |
I – Accommodation and food service activities | 106 | £16,864,237.82 |
H – Transportation and storage | 133 | £15,215,325.34 |
M – Professional, scientific and technical activities | 85 | £12,393,112.14 |
A – Agriculture, forestry and fishing | 94 | £10,142,958.92 |
K – Financial and insurance activities | 19 | £9,246,339.50 |
S – Other service activities | 50 | £5,848,390.68 |
Q – Human health and social work activities | 34 | £5,137,829.78 |
J – Information and communication | 34 | £4,296,206.14 |
R – Arts, entertainment and recreation | 35 | £4,100,898.12 |
E – Water supply; sewerage, waste management and remediation activities | 20 | £3,409,660.68 |
P – Education | 12 | £2,902,540.00 |
B – Mining and quarrying | Redactedi | £441,978.71 |
D – Electricity, gas, steam and air conditioning supply | Redactedii | £112,700.00 |
Grand Total | 1,283 | £200,430,797.53 |
Purpose of Loan | Volume of loans | Total loan value |
Purchasing / hiring of specific equipment / machinery | 456 | £59,858,977.55 |
Expanding an existing business within UK | 270 | £46,255,878.85 |
General working capital requirements | 308 | £37,487,751.51 |
Replacing existing external finance | 54 | £16,544,497.17 |
Acquiring another business within UK | 34 | £14,170,493.00 |
Replacing existing internal finance | 51 | £7,826,040.64 |
Start-up costs | 33 | £6,979,418.00 |
Purchasing specific equipment or machinery | 56 | £5,671,569.56 |
Research and Development activities | 10 | £3,413,300.00 |
Replacing existing internal refinance from a previous BBB Guarantee scheme | 2 | £1,217,525.00 |
Replacing existing internal finance from BBLS, CBILS or CLBILS | 5 | £667,300.00 |
Purchasing licences quotas or other entitlements to trade | 2 | £245,300.00 |
Purchasing / hiring of licences, quotas or other entitlements to trade | 2 | £92,746.25 |
Grand Total | 1,283 | £200,430,797.53 |
The Growth Guarantee Scheme offers lenders a 70% government-backed guarantee, enabling them to provide more debt finance to smaller businesses. The borrower always remains 100% liable for the debt. Launched on 1 July 2024, with a wide range of products supported by a broad variety of accredited lenders, the scheme covers term loans, overdrafts, asset finance, invoice finance and asset-based lending. If a lender can offer a commercial facility on better terms, they will do so.