£400m bank fund launched to help SMEs in West Yorkshire
HSBC UK has today launched a £400m fund for small and medium-sized enterprises (SMEs) in West Yorkshire.
It is part of a broader £15bn lending fund to support SMEs across the UK, as part of its commitment to help British businesses innovate and grow as the country looks to rebound from the COVID-19 crisis.
The Fund, which includes over £10bn of specific regionally focused allocations, will seek to ensure companies throughout the country can benefit, supporting regional economies, employment opportunities and driving growth.
This year’s Fund also includes increased ring-fenced pots for businesses trading internationally (£2bn), the agriculture sector (increased to £1.2bn) and new ring-fenced pots for businesses in the tech sector (£500m) and franchise businesses (£500m).
According to research from HSBC, almost three quarters (71%) of UK businesses expect to have returned to pre pandemic levels of profitability by the end of 2022 and a fifth by the end of this year, plus nearly half of British companies (49%) are projecting sales growth.
Mike Hemingway, HSBC UK’s regional business banking director for the North, said: “We are committed to supporting businesses in West Yorkshire and we know they are adapting at pace and looking at what comes next.
“We recently supported Keighley-based haulier, McDowell, to expand its HGV fleet and bolster its finances, with the backing of the SME Fund.
“This fund is all about helping businesses to take new opportunities and grow and we want to reassure them that we’re here to support them achieve their goals.”
Peter McIntyre, head of small business banking at HSBC UK, said: “With the vaccine rollout, there is light at the end of the tunnel and businesses in West Yorkshire are starting to look ahead again.
“We’ve helped British business get through the last year with over £14bn of Covid-19 lending support.
“Now it’s time to turn our minds to what comes next and how we help companies grow again, opening up a world of opportunity and contributing towards a sustainable future society.
“The £15bn fund will help businesses across the North to expand internationally and here at home, support key sectors and drive investment across regions.”
Philip King, interim small business commissioner, said: “SMEs are the backbone of the economy and ensuring they have the ability to invest and grow is of paramount importance.
“The past 12 months have highlighted the issues many small businesses can face, such as late payments causing real hardship.
“Initiatives such as the lending fund will help more businesses to access finance and will help aid business recovery post COVID-19.”
