Five of the UK’s largest lenders have agreed a combined £11 billion lending package to help small and medium-sized businesses invest, recruit and expand into international markets, marking one of the banking sector’s biggest coordinated funding commitments in more than a decade.

Senior executives from NatWest, HSBC UK, Barclays, Lloyds Banking Group and Santander UK finalised the agreement with ministers at a Westminster roundtable on 26 January, convened by Business Secretary Peter Kyle together with UK Export Finance chief executive Tim Reid.

Together, the five banks serve roughly half of all UK businesses across the country, giving the scheme broad potential reach. The lending will come directly from the banks’ own balance sheets and is intended to widen access to working capital and trade finance for firms pursuing overseas contracts and new export opportunities.

The package is structured with support from UK Export Finance, the government’s export credit agency, which will guarantee up to 80% of eligible loans issued under the programme. Banks will be able to apply the guarantee automatically to working capital loans of up to £10 million, reducing risk exposure and accelerating lending decisions for exporters.

Kyle said the agreement reflects a joint effort between government and lenders to strengthen export-led growth. Strengthening Britain’s export potential, he said, depends on businesses having “the means, motive, and opportunity to succeed in new overseas markets”.

“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,” he said, adding that the move shows clear confidence from UK lenders in the outlook for British enterprise.

Chancellor Rachel Reeves said the funding would help ambitious firms translate export plans into expansion and employment. “Britain’s small businesses are ready to take on the world, and this £11 billion commitment gives them the firepower to do it,” she said. She added that the initiative would turn the strength of the City into “rocket fuel for UK exporters”, backing companies across the country to enter new markets and drive the next phase of growth.

Alongside finance, participating businesses will receive advisory support through bank relationship managers and UKEF’s regional Export Finance Managers. The intention is to combine funding with practical trade expertise, helping firms navigate overseas regulations, manage contract risk and identify market openings.

Reid said exporters are central to the government’s growth ambitions and that the partnership would unlock substantial additional support for companies competing abroad. “This partnership unlocks billions of pounds to help UK businesses compete to win overseas contracts,” he said. He added that it reinforces UKEF’s role as one of government’s most powerful levers for growth and puts significant capital within reach of smaller firms with global ambitions.

Bank leaders said the programme comes at a time when many companies remain cautious because of geopolitical uncertainty, yet continue to pursue international expansion.

Stephanie Betant, head of global trade solutions at HSBC, said recent bank research suggests exporter confidence remains strong, with 82% of internationally active UK businesses expecting to grow over the next two years. She said the bank would continue helping clients invest, innovate and export with confidence, using its international connections to guide firms through complexity and support sustainable overseas growth.

At NatWest, commercial and institutional banking chief executive Robert Begbie said improving access to suitable finance would help companies innovate and expand internationally, supporting long term economic growth. He said the bank is committed to helping UK businesses grow with confidence as they increase their global presence.

John Baldwin, chief executive of Santander’s corporate and commercial banking division, said its latest Trade Barometer shows rising interest in international expansion despite global pressures. He said the new lending packages, combined with the bank’s sector and country expertise and its Navigator Global digital platform, would support companies entering new markets.

Matt Hammerstein, chief executive of Barclays UK Corporate Bank, said small and medium sized firms remain at the core of the UK economy. He said closer cooperation between lenders, government and UKEF would help businesses access finance, expertise and international networks, enabling them to export, scale and compete worldwide.

Paul Kempster, managing director for commercial banking coverage at Lloyds Banking Group, said the initiative demonstrates how banks and government can work together to unlock export potential. He said dedicated trade finance support would enable more firms to pursue overseas opportunities, scale internationally and bring investment and jobs back into the UK.

Ministers said the lending programme sits alongside wider small business support, including measures to tackle late payments, cut red tape and improve access to finance. Combined with trade and modern industrial strategies, the approach is intended to remove barriers to growth and help more smaller firms scale successfully through exporting.

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