Five UK banks-HSBC UK, NatWest, Barclays, Lloyds and Santander-have agreed a combined £11 billion lending package for small and mid-sized firms. Facilities will sit on banks’ balance sheets, with UK Export Finance (UKEF) guaranteeing up to 80% of eligible loans and an automatic guarantee available for working capital loans up to £10 million. The agreement was finalised on 26 January 2026 and the official notice was updated on 2 February 2026. (gov.uk)
The structure is a risk‑sharing arrangement: UKEF provides a partial guarantee while lenders retain residual exposure and continue to underwrite, price and service the facilities. The automatic guarantee reflects delegated authority within participating banks, designed to speed up decisions for smaller working‑capital needs where eligibility is clear. (gov.uk)
Most SMEs seeking flexible, multi‑use working capital are expected to use UKEF’s General Export Facility (GEF), which typically supports facilities up to £25 million with an 80% guarantee and does not need to be tied to a single export contract. Larger needs-above £25 million-can be assessed under the Export Development Guarantee (EDG). For exporters financing a specific order, the Export Working Capital Scheme (EWCS) can back pre‑ and post‑shipment facilities with up to 80% cover. (ukexportfinance.gov.uk)
Eligibility varies by product. For GEF, companies generally demonstrate export activity by showing either at least 20% of turnover from exports in any one of the last three financial years or at least 5% in each of the last three. EDG can support established exporters meeting a 20% turnover test or firms with a credible plan to develop UK exports within five years. EWCS requires a contract with an overseas buyer and supports UK‑based exporters fulfilling that order. (ukexportfinance.gov.uk)
Application is via participating banks, which can apply UKEF support under delegated criteria for smaller working‑capital facilities; exporters can also draw on free advice from UKEF’s regional Export Finance Managers alongside bank relationship teams. Businesses should expect lenders to run standard credit processes even where the guarantee applies. (gov.uk)
Costs are set by lenders and may include a risk‑based premium associated with UKEF cover. UKEF’s pricing framework is designed to ensure the agency operates at no net cost to the taxpayer over time, with premiums calibrated to risk using published metrics. Exporters can request indicative premium guidance for certain transaction types. (gov.uk)
All UKEF‑supported transactions are subject to compliance checks, including anti‑bribery and corruption standards and environmental, social and human rights due diligence. Country cover and sanctions policies also apply, meaning availability can differ by market and may change over time. (gov.uk)
Use of funds can include trade loans, bonding and letter‑of‑credit lines under GEF, giving headroom for labour costs and inventory linked to exporting; EDG allows investment in product development, staffing and bidding for larger contracts; EWCS supports contract‑specific working capital needs pre‑ and post‑shipment. (ukexportfinance.gov.uk)
The lending push sits alongside the government’s Plan for Small Business, which proposes the toughest crackdown on late payments in 25 years and a new Business Growth Service to simplify access to advice. These reforms are intended to improve cash flow and reduce time spent on administration, complementing access to trade finance. (gov.uk)
British Business Bank programmes are also being expanded within the wider small business plan, increasing capacity for debt and equity finance. Together with UKEF guarantees, this creates multiple routes for firms to finance growth, depending on whether needs are domestic, export‑linked or equity‑based. (british-business-bank.co.uk)
For finance directors, immediate actions include confirming which UKEF route best matches need (GEF for multi‑use working capital, EWCS for a single order, EDG for larger balance‑sheet investment), checking exporter revenue thresholds, and preparing recent management accounts, pipeline evidence and buyer information for lender due diligence. Where eligibility is marginal, early contact with an Export Finance Manager can clarify options. (ukexportfinance.gov.uk)
The government notes that the five participating banks collectively serve around half of British businesses, so uptake and regional distribution will be closely watched. While the guarantee should expand credit appetite, support remains subject to lender credit policy and UKEF eligibility. Firms targeting new markets should also check current country cover before committing. (gov.uk)