UK Export Finance and British Business Bank to launch joint scheme to support thousands of smaller exporters

New scheme will increase access to finance for thousands of smaller businesses so they can grow their exports.

Chancellor of the Exchequer Rachel Reeves has today (12 July) announced a joint scheme between UK Export Finance (UKEF) and the British Business Bank which will help small and medium-sized businesses access the finance they need to expand their export potential and grow.

Launching in spring next year, the scheme will target support at the estimated thousands of SMEs with export ambitions that often struggle to secure finance.

Combining UKEF’s export finance specialism with the British Business Bank’s expertise in unlocking lending for smaller businesses, the partnership will address a gap in finance for smaller business exporters, particularly those seeking lower-value working capital loans, broadening opportunities for export growth for a wider range of businesses.

UKEF will provide a guarantee on a portion of eligible portfolio-level losses, with lenders retaining a share of risk, while the British Business Bank will assess, onboard and manage commercial lenders participating in the scheme. The portfolio guarantee is designed to reduce lender costs and enable scalable lending to smaller business exporters.

By setting wide eligibility criteria and using a tried-and-tested lender guarantee model, the scheme is expected to increase the availability of finance for smaller exporters and improve access for businesses that are currently underserved.

The scheme will be open to SMEs across all sectors and will support lending facilities including term loans and working capital.

Smaller businesses across the UK have the ideas, ambition, and talent to succeed on the world stage, but too often they struggle to get the finance they need to reach their full potential.

This new partnership will help more businesses break into overseas markets, win new customers and turn local success into global growth.