£1.1bn SME lending fund launched

HSBC has bolstered its lending to SMEs in the West Midlands with the launch of a £1.1bn fund for businesses in the region.

The bank said its £10bn SME Fund last year was “fully utilised” and has increased the size of the pot to £12bn. In the previous four years of the fund, HSBC has committed £34bn to SMEs.

HSBC approved more than 90% of lending applications across the UK last year.

Martin Hanson, HSBC’s regional director for business banking in the West Midlands, said: “This latest fund highlights HSBC UK’s unwavering commitment to supporting the growth of SMEs right across the West Midlands, no matter whether they’ve just started out or are an already established business.

“We are particularly pleased that this is the biggest city fund outside of London and demonstrates the Bank’s commitment to Birmingham and the wider region.”

In the West Midlands, the fund has increased by £100 million since 2017.

Earlier this year Barclays revealed a £370m lending fund for Midlands SMEs while the Midlands Engine Investment Fund also has £250m targeted at helping businesses in the region grow.

Data for the main High Street banks, collated by UK Finance, shows lending to non-financial businesses has been steady for the last three years, at around £270bn. However it is around £50bn lower than in 2011.

Lending to non-financial businesses from the main High Street banks (£mn):

Data: UK Finance

Close