£1.5bn fund launched for West Midlands SMEs

HSBC has launched its latest SME lending fund, with £1.5bn earmarked for businesses in the West Midlands.

It is part of a wider UK £15bn fund dedicated to support SMEs that may be struggling with cost of living challenges, as well as providing a new Financial Worries and Wellbeing Hub and support from HSBC’s specialist financial support team for customers showing early warning signs of financial difficulty.
 
The fund is available to businesses across the country and includes allocated funding for businesses trading internationally (£2bn), in the agriculture sector (£1.2bn) the tech sector (£500m) and franchise businesses (£500m).

The bank says that a third (36%) of UK businesses plan to adapt their strategies to navigate financial challenges over the next six months.

One in five (20%) businesses feel optimistic that business will get better, despite a similar figure (22%) reporting that the current challenges were having a worse impact on their business than the COVID-19 pandemic.
 
The research reveals the top three issues currently affecting businesses are rising energy bills (77%), travel costs (76%) and rent (23%).
 
Business and Trade Minister Kevin Hollinrake commented: “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.”
 
Peter McIntyre, Head of Business Banking at HSBC 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.

“HSBC UK package of support is designed to give businesses access to the help they need to weather the current challenges they are facing.”