Thousands of small and medium-sized businesses (SMEs) across the UK are set to gain easier access to export finance under a new government-backed lending scheme announced by
Chancellor Rachel Reeves.
The initiative, due to launch in spring 2027, brings together the expertise of UK Export Finance (UKEF) and the British Business Bank to improve access to funding for smaller firms looking to sell goods and services overseas.
The scheme is designed to address a long-standing financing gap for SMEs, particularly businesses seeking lower-value working capital loans that can be difficult to obtain through traditional lending.
Under the arrangement, UKEF will guarantee part of the losses on eligible lending portfolios, while participating banks will continue to bear a share of the risk. The British Business Bank will oversee the accreditation and management of commercial lenders involved in the programme.
Officials say the guarantee model, combined with broad eligibility criteria, should reduce borrowing costs for lenders and encourage increased lending to smaller exporters that have previously struggled to secure finance.
The programme will be open to SMEs across all sectors and will support a range of borrowing options, including term loans and working capital facilities.
Business Secretary Peter Kyle said many smaller companies had the innovation and ambition to compete internationally but often lacked the financial backing needed to expand.
He said the new partnership would help more firms enter overseas markets, attract new customers and grow beyond the UK.
UKEF Chief Executive Tim Reid said the organisation's role was to ensure that no viable export opportunity failed because of a lack of finance. He described the partnership with the British Business Bank as an important step towards making export finance more accessible for smaller businesses.
British Business Bank Chief Executive Louis Taylor said the collaboration had the potential to strengthen the UK's international competitiveness by improving access to finance for small exporters.
As part of the initiative, UKEF's network of Export Finance Managers will work alongside the British Business Bank's Local Growth Team to guide businesses towards suitable financial support across every region of the UK.
The announcement follows the publication of UKEF's 2025-26 Impact Report, which showed the agency provided more than £11bn in loans, guarantees and insurance over the past year. According to the report, that support helped sustain up to 85,000 jobs and contributed as much as £6.4bn to the UK economy. Photo by Lauren Hurley / No 10 Downing Street, Wikimedia commons.
