Some of the UK’s major banks have agreed to a £11 billion lending package which aims to help businesses invest and expand abroad.

The lending commitment, from the UK’s five leading banks, is one of the largest collective moves by the banking sector in over a decade, representing an historic show of confidence in the UK economy.

Senior executives from NatWest, HSBC UK, Barclays, Lloyds and Santander finalised an agreement with the Government at a roundtable in Westminster convened by the Business Secretary and the CEO of UKEF Tim Reid.

Together, the banks serve half of all British businesses across all corners of the country.

“Strengthening Britain’s export potential relies on British businesses having the means, motive, and opportunity to succeed in new overseas markets,” business secretary Peter Kyle said.

“The £11 billion these banks are making available will help meet the ambitions of smaller British businesses to fully export, expand and exploit these international market opportunities. It is positive proof of UK lenders’ confidence in the growth prospects of British enterprise.”

The lending is set to be drawn entirely from the banks’ own balance sheets and will give small and mid-sized enterprises a powerful route to access the finance advice they need to compete globally.

UK Export Finance (UKEF), the government’s export credit agency, will guarantee up to 80% of eligible loans issued by each bank. Banks can apply UKEF’s guarantee automatically for working capital loans of up to £10 million.

Recommended reading

• British Business Bank Invests €20M to Sustainable Innovation Growth Fund
• British Business Bank Backs Diversity With £500M Funding Initiative
• Metahelios is British Business Bank Start Up Loans Ambassador to Scotland

Alongside funding, businesses will also benefit from advisory support through banks’ relationship managers and UKEF’s regional Export Finance Managers, helping them navigate global markets and seize new opportunities.

“Britain’s small businesses are ready to take on the world – and this £11 billion commitment gives them the firepower to do it,” Chancellor of the Exchequer Rachel Reeves said.

“We’re turning the power of the City into rocket fuel for UK exporters – backing ambitious firms in every part of the country to break into new markets, create good jobs and drive the next decade of British growth.”