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.
Business Secretary, Peter Kyle said
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.
UK Export Finance CEO, Tim Reid said
UK Export Finance exists to ensure no viable UK export fails for lack of finance, and this new joint scheme with the British Business Bank is a significant step towards furthering this mission.
One of our main business priorities is to make it easier than ever for SMEs to harness the power of international markets. By combining access to finance, digital services and targeted support with the British Business Bank’s expertise in unlocking lending, we can support a new generation of exporters.
Louis Taylor, CEO, British Business Bank, added
The new scheme announced today has the potential to transform UK economic performance and competitiveness on the global stage.
Bringing together specialist expertise from across UK Export Finance and the British Business Bank to design and implement this new scheme is a great example of how public finance institutions can collaborate and amplify each other’s impact for the benefit of UK smaller businesses.
UK Export Finance’s nationwide team of Export Finance Managers will work alongside the British Business Bank’s Local Growth Team to direct businesses to the right support, ensuring that the scheme reaches smaller businesses in every corner of the UK.
Earlier this week, UKEF announced its 2025 to 2026 Impact Report. Over the last year, the department provided over £11 billion in loans, guarantees and insurance to help UK companies export and grow, supporting up to 85,000 jobs and contributing up to £6.4 billion to the economy.
