Growth Guarantee Scheme expanded to support SMEs affected by US tariffs

When it comes to supporting growth amid global challenges, Compass Business Finance and the British Business Bank’s Growth Guarantee Scheme (GGS) – newly bolstered with additional funding – are helping manufacturers navigate US tariffs. 

In today’s interconnected world, manufacturers face a myriad of challenges, including fluctuating global tariffs that can significantly impact their operations. The recent US tariffs have created substantial uncertainty for many UK manufacturers, affecting their cash flow and overall financial stability. However, there is a beacon of hope: the British Business Bank’s GGS has been bolstered with additional funding to support those affected by these tariffs.

The GGS is designed to provide smaller businesses with access to finance, enabling them to invest and grow despite economic disruptions. On 13 April 2025, the Chancellor announced an additional £500 million in lending capacity for the scheme. This 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.

Compass Business Finance, a hybrid lender-broker, has been a trusted partner for many businesses seeking flexible and competitive finance solutions. With a strong focus on customer-first values and industry expertise, Compass is well positioned to help its clients leverage the benefits of the scheme. As an accredited lender, Compass is able to deliver funding with GGS support to UK SME manufacturers, ensuring that they have access to the necessary financial resources to overcome challenges and invest in their growth.

Benefits of the GGS include:

1. Enhanced access to finance: The additional backing of the GGS enables Compass to supply funding to manufacturers where either the risk would have previously been seen as too high, or to offer more favourable terms.

2. Improved cash flow management: One of the primary challenges posed by the US tariffs is disrupted cash flow. Compass can help businesses manage their cash flow more effectively, ensuring they can continue operations without undue financial strain through a variety of funding options.

3. Investment in growth: Despite the economic challenges, manufacturers must continue to invest in their growth to remain competitive. The GGS allows SME manufacturers to secure financing for legitimate business purposes, including investment in new more efficient technologies, expansion projects and sustainable assets. This investment is crucial for long-term success and resilience.

Conclusion

Additional funding for the GGS from the British Business Bank is a significant step towards supporting UK manufacturers affected by the US tariffs. Compass Business Finance, with its customer-first approach and industry expertise, is positioned to help clients navigate these challenges. By providing enhanced access to finance, improved cash flow management and opportunities for investment in growth, Compass is helping SME manufacturers face adversity and pursue new opportunities.