UK Export Finance and British Business Bank Unveil New Initiative to Boost Support for Thousands of Small Exporters

New Initiative to Support Small and Medium Enterprises in Exporting

Chancellor of the Exchequer Rachel Reeves has unveiled an innovative joint initiative between UK Export Finance (UKEF) and the British Business Bank aimed at empowering small and medium-sized enterprises (SMEs) to enhance their export capabilities and foster growth. This new scheme is set to launch in spring next year and is specifically designed to assist the thousands of SMEs with export aspirations that frequently encounter challenges in securing necessary financing.

The collaboration seeks to merge UKEF’s specialised knowledge in export finance with the British Business Bank’s proficiency in facilitating lending for smaller enterprises. By addressing the financial barriers that have historically hindered smaller business exporters—particularly those in need of lower-value working capital loans—the partnership aims to broaden the horizons for export growth across a diverse array of businesses.

Enhancing Access to Finance for SMEs

Under the scheme, UKEF will extend a guarantee covering a portion of eligible losses at the portfolio level, while lenders will retain a share of the associated risks. The British Business Bank will be responsible for the assessment, onboarding, and management of the commercial lenders involved in this initiative. This portfolio guarantee is strategically designed to lower costs for lenders and enable scalable financing options for smaller exporters.

With broad eligibility criteria and a proven lender guarantee model, the scheme is anticipated to significantly enhance the availability of finance for smaller exporters. It aims to improve access for businesses that have previously been underserved, empowering them to seize new opportunities.

The initiative will cater to SMEs across all sectors and will support a variety of lending facilities, including term loans and working capital options.

Government Officials Highlight the Importance of the Scheme

Business Secretary Peter Kyle remarked on the initiative’s potential impact, stating: “Smaller businesses across the UK possess the ideas, ambition, and talent to thrive on the global stage. However, they often face difficulties in obtaining the finance required to realise their full potential. This new partnership will facilitate the entry of more businesses into international markets, allowing them to acquire new customers and transform local achievements into worldwide success.”

Tim Reid, CEO of UK Export Finance, emphasised the organisation’s commitment to ensuring that no viable UK export fails due to a lack of financial support. He described the new scheme as a significant advancement in fulfilling this mission. “One of our core priorities is to simplify access for SMEs to leverage the potential of international markets. By combining financing options, digital services, and targeted support with the British Business Bank’s lending expertise, we can nurture a new generation of exporters,” he stated.

Collaboration for Greater Impact

Louis Taylor, CEO of the British Business Bank, added that the newly announced scheme holds the potential to significantly enhance the UK’s economic performance and competitiveness on the global stage. He noted that the collaboration between UK Export Finance and the British Business Bank exemplifies how public finance institutions can work together to amplify their impact for the benefit of smaller businesses throughout the UK.

To ensure the scheme effectively reaches SMEs across the nation, UK Export Finance’s dedicated team of Export Finance Managers will collaborate with the British Business Bank’s Local Growth Team to guide businesses towards the appropriate support.

In a related development, UKEF recently released its Impact Report for 2025 to 2026, revealing that over the past year, the department provided more than £11 billion in loans, guarantees, and insurance to assist UK companies in their exporting endeavours. This support has contributed to the safeguarding of up to 85,000 jobs and has added approximately £6.4 billion to the economy.