Barclays, Lloyds, NatWest, HSBC UK, and Santander which collectively serve half of all British businesses committed to the 11 billion SME growth lending package during a Westminster roundtable on 26 January.

Described by the UK government as "one of the largest collective moves by the banking sector in over a decade," the funding draws entirely from the banks' internal reserves. It provides SMEs with access to finance and expert advice to compete globally.

Government-Backed Export Support

The package partners with UK Export Finance (UKEF), the government's export credit agency, which will guarantee up to 80% of eligible loans. SMEs will also receive advisory support from UKEF's regional export finance managers and the banks' relationship teams.

UK Business Secretary Peter Kyle hailed the move: "Strengthening Britain's export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets." He added that the 11 billion "will help meet the ambitions of smaller British businesses to fully export, expand and exploit these international market opportunities," signalling lenders' confidence in UK enterprise growth.

Broader Context for SME Support

This agreement aligns with wider government efforts, including a new "scale-up unit" led by the Financial Conduct Authority and Prudential Regulation Authority. The unit assists financial services firms in navigating regulatory challenges during expansion.

SMEs, vital to the UK economy, face ongoing hurdles in securing finance for growth. This lending commitment addresses that gap, particularly as businesses seek to capitalise on post-Brexit trade agreements and global opportunities.