HSBC launches £15 billion fund to support UK SMEs

High-street bank HSBC has announced the launch of a new £15 billion lending fund to support SMEs in the UK to invest in their growth.

The fund has been launched as part of the bank’s commitment to support UK businesses to grow, with SMEs accounting for three-fifths of employment and around 50% of private sector turnover. The lending fund aims to support HSBC’s SME customers to grow through investment, acquisitions and capital expenditure.

Allocations within the fund also aim to ensure companies throughout the country can benefit, while also providing funding for businesses trading internationally, the agriculture, tech and franchise sectors.

Peter McIntyre, Head of Business Banking at HSBC UK, said:

“SMEs are vital to the UK economy, and our customers have told us they are ready to invest for growth. The £15 billion Fund will help businesses to expand internationally, as well as here in the UK, supporting key sectors and driving investment across the regions.

“We want to make a significant contribution to economies across the country, driving employment, local wealth and growth by providing funding, when and where it’s needed most. We know our customers are innovating and adapting at pace and British businesses need their bank to be flexible, supporting future growth opportunities.”

Small Business Minister, Paul Scully said:

“This new Fund puts HSBC on course to have lent more than £100 billion to UK small businesses within a decade, which is a great milestone for HSBC and even better for the communities across the country being helped to thrive.

“This extra funding builds on the support available through government schemes like Help to Grow and Start Up Loans to help small businesses grow and reach their full potential.”

Small Business Commissioner, Liz Barclay, said:

“The challenges facing small businesses are beyond imagination. The problems caused by poor payment practices such as late or delayed payments, and extended payment terms pile pressure on cash flow. Small firms are the lifeblood of the economy, and they must be paid fast and fair, and if they are to have the confidence to invest and build the resilience, they’ll need to weather the storms ahead and they will need the support of Funds like this more than ever”.

The £15 billion lending fund for UK SMEs follows a Green SME Fund launched earlier this year to support businesses to transition to thrive in a low carbon economy and support decarbonisation plans.