£11 billion push to back British businesses
UK businesses are set to benefit from a landmark £11 billion lending package to help them invest and expand abroad, to grow their businesses and the economy.
The lending commitment, from the UK’s five leading banks, is one of the largest collective moves by the banking sector in over a decade, representing an historic show of confidence in the UK economy.
Senior executives from NatWest, HSBC UK, Barclays, Lloyds and Santander finalised an agreement with the Government today (26 January) at a roundtable in Westminster convened by the Business Secretary and the CEO of UK Export Finance (UKEF) Tim Reid. Together, the banks serve half of all British businesses across all corners of the country.
The lending will be drawn entirely from the banks’ own balance sheets and will give small and mid-sized enterprises a powerful route to access the finance and expert advice they need to compete on the world stage.
UKEF, the government’s export credit agency, will guarantee up to 80% of eligible loans issued by each bank. Banks can apply UKEF’s guarantee automatically for working capital loans of up to £10 million.
Alongside funding, businesses will also benefit from advisory support through banks’ relationship managers and UKEF’s regional Export Finance Managers, helping them navigate global markets and seize new opportunities.
“Amid geopolitical volatility, UK businesses continue to reap the benefits of global trade. Recent HSBC UK research found that 82% of businesses that trade overseas expect to grow over the next two years,” said Stephanie Betant, Head of Global Trade Solutions for HSBC.
“As a UK bank providing market leading international services, we help companies to invest, innovate, and export with confidence. We look forward to continuing this work, using our international connections to help leaders navigate complexities and unlock sustainable growth overseas.”
