UK Government, Five Big Banks Sign SME Finance Deal
The UK cabinet has agreed to support SME financing in an effort to support export-oriented industries. Five major British banks (Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Santander) have partnered on the deal to provide more finance options to export-oriented, allowing the UK to boost export volumes, create new jobs and spur overall economic growth – in the wake of Brexit. The government’s hope is that UK lenders will expand their working capital loans issuance, plus issuance of debt for international buyers.
The deal will give banks a government guarantee on small business lending, reducing risks for the SMEs. A reported £500m in funds have been provided to SMEs by UK Export Finance since 2011.