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Posted: Fri 2nd Jun 2023
High street bank HSBC has unveiled a £15bn fund to help small and medium sized enterprises (SMEs) deal with the UK's current challenging economic conditions.
The finance has been allocated to sectors and regions as follows:
international trading businesses: £2bn
agriculture businesses: £1.2bn
franchise businesses: £500m
technology businesses: £500m
South England: £4bn
North England: £3.3bn
London: £3bn
Midlands: £2.7bn
Scotland: £1bn
Wales: £750m
Northern Ireland: £250m
Businesses are currently facing a range of financial pressures due to the cost of living crisis and high inflation.
HSBC research released to mark the launch of the fund found that 36% of UK businesses are adapting their plans to deal with financial challenges, while a survey by Enterprise Nation earlier this year showed 57% of small businesses intend to access finance.
Founders expect to take on an average of £55,972 in investment, the Enterprise Nation report revealed, which is a 16% increase on the findings from research conducted in the previous quarter.
Peter McIntyre, head of business banking at HSBC UK, said:
"SMEs are the lifeblood of the UK economy. During the pandemic, many businesses had to act fast to successfully adapt, and we’re seeing the same resilience again now.
“The UK is home to many fast growing, robust and innovative businesses who, together with the support of their banks, can seize opportunities and become stronger."
Small business minister Kevin Hollinrake added:
"British SMEs are vital to our communities, creating jobs and opportunities, and they have shown great resilience in the face of challenging circumstances.
“Through the British Business Bank, the government is helping more businesses to access the finance they need to start, scale and grow. It is great to see HSBC doing their bit to back business through their SME lending fund and other support services."
