HM Treasury said on 12 July 2026 that UK Export Finance and the British Business Bank will create a joint scheme for smaller exporters, with launch planned for spring 2027. The measure is intended to help the thousands of SMEs identified by government as having export plans but struggling to secure the finance needed to take on overseas orders or expand into new markets. The announcement presents the measure as a public-finance intervention rather than a grant programme. Its purpose is to widen lending availability for businesses that are smaller or seeking facilities below the values that lenders often prioritise.
According to the government announcement, the scheme combines UKEF's export finance specialism with the British Business Bank's role in supporting lending to smaller businesses. The stated policy problem is a financing gap for smaller exporters, especially firms seeking lower-value working capital loans. That matters because exporting often creates a cash-flow gap before revenue is received. Businesses may need funds to buy inputs, pay staff or bridge customer payment terms, yet smaller-ticket facilities can be difficult to arrange even where overseas demand is real.
Under the model set out by UKEF, the department will guarantee a portion of eligible portfolio-level losses, while participating lenders will keep a share of the risk. The British Business Bank will assess, approve and manage the commercial lenders using the scheme. This is a familiar state-backed guarantee approach. By absorbing part of potential losses rather than lending directly, government aims to reduce lender costs and make a larger volume of smaller export loans commercially workable.
The announcement says eligibility will be broad and that the scheme will be open to SMEs in all sectors. Support is expected to cover term loans as well as working capital facilities, giving lenders scope to back both longer-term expansion and day-to-day trading needs tied to export activity. For businesses, the practical significance is clear. Firms that have previously found export borrowing unavailable or too limited may see more viable options once participating lenders begin offering products under the guarantee.
Distribution will rely on existing public-finance networks. UKEF's Export Finance Managers are due to work alongside the British Business Bank's Local Growth Team so that businesses can be directed to the relevant support through local and regional channels. That delivery model matters because access problems are not only about price. Smaller firms often need help identifying the right lender, understanding whether export finance fits their needs, and moving through application requirements that can be disproportionate for modest borrowing amounts.
Ministers and agency leaders used the announcement to frame the scheme as an intervention on competitiveness as well as access to finance. Peter Kyle said smaller firms often have the ambition to enter overseas markets but lack the funding to do so, while UKEF chief executive Tim Reid described the partnership as part of UKEF's remit to prevent viable exports failing for lack of finance. Reid also linked the measure to UKEF's wider offer of digital services and targeted support. British Business Bank chief executive Louis Taylor said the scheme could strengthen economic performance by bringing together specialist public-finance expertise. The common message across the announcement is that export growth is being treated as a credit access issue as much as a trade promotion issue.
The announcement follows UKEF's 2025 to 2026 Impact Report, published earlier in the week. UKEF said it had provided more than £11 billion in loans, guarantees and insurance over the previous year, supporting up to 85,000 jobs and contributing up to £6.4 billion to the economy. Set against that backdrop, the joint scheme is intended to widen the base of firms able to use state-backed export finance rather than concentrating support on larger or more established exporters. Its effect will depend on whether the guarantee structure results in materially easier access to working capital and term lending for smaller businesses across the UK once the scheme opens.