The UK's export ambitions are set to receive a significant boost, thanks to a new joint scheme aimed at bridging the finance gap that often holds back smaller businesses from expanding into international markets. The partnership between UK Export Finance (UKEF) and the British Business Bank is expected to unlock £1.2 billion in funding for thousands of small and medium-sized enterprises (SMEs), with the bulk of this targeted towards lower-value working capital loans.
The collaboration, announced by Chancellor of the Exchequer Rachel Reeves, will leverage UKEF's expertise in export finance alongside the British Business Bank's extensive experience in facilitating lending for smaller businesses. This strategic alliance is specifically designed to support exporters who struggle to secure finance, thereby broadening opportunities for a wider array of businesses to grow their international trade.
Under the scheme, UKEF will provide a guarantee on a portion of eligible portfolio-level losses, reducing costs for lenders and enabling scalable lending to smaller business exporters. Lenders will retain a share of the risk, while the British Business Bank will be responsible for assessing, onboarding, and managing the commercial lenders participating in the programme. The broad eligibility criteria and proven lender guarantee model are expected to significantly increase the availability of finance for currently underserved smaller exporters across all sectors.
Business Secretary Peter Kyle commented that many smaller businesses possess the ideas and ambition to succeed globally but often face difficulties in securing the necessary funding. He stated that this new partnership would assist more businesses in entering overseas markets, attracting new customers, and transforming local successes into global growth. Tim Reid, CEO of UK Export Finance, emphasised the organisation's mission to ensure no viable UK export fails due to a lack of finance, viewing the joint scheme as a significant step towards achieving this goal.
The scheme will support various lending facilities, including term loans and working capital. UKEF’s nationwide team of Export Finance Managers will collaborate with the British Business Bank’s Local Growth Team to guide businesses towards appropriate support, ensuring the scheme reaches small businesses across the entire UK. In its 2025-26 Impact Report, UKEF revealed that it provided over £11 billion in loans, guarantees, and insurance in the past year, supporting up to 85,000 jobs and contributing up to £6.4 billion to the economy.