The Growth Guarantee Scheme will run from 1 July 2024 to 31 March 2026, and will be administered by the British Business Bank.

The scheme is predicted to support 11,000 businesses and lenders and offer a 70% government-backed guarantee on facilities up to £2m.

The Recovery Loan Scheme was launched in 2021 and aimed to support access to finance for SMEs to foster growth. It was the successor to the Coronavirus Business Interruption Loan Scheme (CBILS).

Atom Bank said that the Growth Guarantee Scheme accreditation showed its “commitment to championing the nation’s small businesses” and had provided £235m in funding to date through the Recovery Loan Scheme.

Pricing for the Growth Guarantee Scheme starts at 6.41% for a fixed rate at 50% loan to value (LTV) and base rate plus 2.48% for a variable rate at the same LTV tier.

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Going up to 60% LTV, a fixed rate is priced at 6.78% and the variable rate is the base rate plus 2.78%.

At 70% LTV, a fixed rate is 7.21% and the variable option is the base rate plus 3.1%.

Tom Renwick (pictured), head of business lending at Atom Bank, said: “We are delighted to have been accredited for the Growth Guarantee Scheme, in recognition of our passion and support of SMEs across the UK as they look to achieve sustainable growth.

“Atom Bank has been a proud participant in previous schemes, offering significant levels of funding to businesses as they looked to initially recover from the pandemic, and more recently as they look to invest and grow.”

He added: “That commitment has been further demonstrated through the recent criteria and policy enhancements we have made, increasing the maximum LTV available on larger loans and reducing our commercial mortgage rates. Atom Bank is determined to champion the needs of SMEs and continue to unlock the funding they need in order to reach their ambitions.”

Atom Bank recently announced that it had exceeded £1bn in commercial mortgage completions.