HSBC UK has launched a £15bn lending fund today for small and medium-sized businesses (SMEs), with £1bn ring-fenced for Scotland.
The fund is a part of the bank's commitment to help British businesses to innovate, thrive and grow in the UK and internationally.
It includes specific funding for businesses trading internationally (£2bn), in agriculture (£1.2bn), the technology sector (£500m) and franchise businesses (£500m).
The fund is also aligned with the Green SME Fund (£500m) and the new Growth Lending Fund (£250m) for high growth tech businesses.
Since launching the SME Fund in 2014, HSBC has lent more than £90bn to businesses across the UK.
In 2021, it enabled an Edinburgh-based blanket and scarf company to extend its premises and hire 40 new staff with a seven-figure funding package. The Tartan Blanket Company purchased a 32,000 sq ft warehouse in Newbridge to meet increased demand from international customers.
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.
“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.”
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.”
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