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UK Government, Five Big Banks Sign SME Finance Deal

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.