UK Export Finance has agreed to provide automatic guarantees on an £11 billion working capital lending package designed to help British small and medium-sized enterprises expand into overseas markets, marking what the government described as one of the largest coordinated banking moves in more than a decade.
The scheme will see Barclays, HSBC, Lloyds, NatWest, and Santander provide funding from their own balance sheets, with UKEF guaranteeing up to 80% of eligible loans. Banks will be able to apply the guarantee automatically for working capital facilities of up to £10 million, reducing risk and speeding up access to finance for exporters. Alongside lending, the banks and UKEF will also offer advisory support to borrowers.
The agreement was announced following discussions in Westminster, where the five lenders, together serving around half of all UK businesses, committed to backing companies seeking to benefit from new trade opportunities and international expansion.
The funding is expected to primarily support smaller enterprises, which often face greater barriers in accessing export finance.
HSBC, which has pledged £3 billion under the program, said its research shows that 82% of internationally trading businesses expect to grow over the next two years, but many struggle to secure the capital and guidance required to scale globally.
Business Secretary Peter Kyle, who convened the talks, said strengthening Britain’s export potential depends on businesses having the means, motivation, and opportunity to succeed in overseas markets. He said the £11 billion commitment would help smaller companies export more fully and capitalize on international market opportunities.
UKEF chief executive Tim Reid said the agreement unlocks billions of pounds to help UK businesses compete for overseas contracts and strengthen their international competitiveness.
The announcement follows last year’s decision by the government to increase UKEF’s overall capacity by £20 billion, raising its lending and guarantee limit to £80 billion as part of the UK’s first post-EU trade strategy since leaving the bloc in 2020. In 2024, UKEF also set a target to support 1,000 SMEs annually by 2029, up from just over 200 in the previous financial year.
Santander’s corporate and commercial banking chief executive, John Baldwin, said the bank’s latest Trade Barometer research shows UK companies have a growing interest in international expansion despite ongoing geopolitical challenges. He said the new lending packages would support overseas growth ambitions across the country and contribute to wider economic growth.
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