The UK’s five biggest banks have committed to lend £11 billion to businesses, with a particular focus on helping small and medium firms to export.
The announcement follows a meeting between NatWest, HSBC UK, Barclays, Lloyds and Santander, business secretary Peter Kyle and UK Export Finance (UKEF) CEO Tim Reid.
The government claimed it is ”one of the largest collective moves by the banking sector in over a decade”.
The lending is aimed at helping SMEs to trade internationally.
UK Export Finance, the government’s export credit agency, will guarantee up to 80% of eligible loans. Banks can apply UKEF’s guarantee automatically for working capital loans of up to £10 million.
Alongside funding, businesses will also be able to access advice from the banks’ relationship managers and UKEF’s regional export finance managers.
Peter Kyle said:
“Strengthening Britain’s export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets.
“The £11 billion these banks are making available will help meet the ambitions of smaller British businesses to fully export, expand and exploit these international market opportunities. It is positive proof of UK lenders’ confidence in the growth prospects of British enterprise.”