£1.4bn fund launched to help SMEs across Yorkshire
HSBC UK has launched a £15bn lending fund today for small and medium sized businesses, with £1.4bn ring-fenced to support local economies, employment opportunities and drive growth across Yorkshire.
The fund is a key part of HSBC’s commitment to help British businesses to innovate, thrive and grow in the UK and internationally.
It also includes ring-fenced cash for businesses trading internationally (£2bn), in the agriculture sector (£1.2bn) the tech sector (£500m) and franchise businesses (£500m).
It is also aligned with the Green SME Fund (£500m) for businesses of all sizes to transition and thrive in a low carbon economy and the new Growth Lending Fund (£250m) for high growth tech businesses to support well-equitised, high growth, loss-making scale ups early in their growth journey.
In 2022, the HSBC UK SME Fund enabled a Sheffield-based model train retailer to expand to new operational premises with support from a seven-figure funding package.
Following an increase in demand and many years of growth, HSBC UK funding has enabled Rails of Sheffield to purchase land and construct a 12,000 sq ft new building to accommodate offices and provide additional storage for stock.
Small Business Minister, Paul Scully said: “This new fund puts HSBC on course to have lent more than £100bn to UK small businesses within a decade, which is a great milestone for HSBC and even better for the communities across the country being helped to thrive.
“This extra funding builds on the support available through Government schemes like Help to Grow and Start Up Loans to help small businesses grow and reach their full potential.”
Small Business Commissioner, Liz Barclay, said: “The challenges facing small businesses are beyond imagination.
“The problems caused by poor payment practices such as late or delayed payments, and extended payment terms pile pressure on cash flow.
“Small firms are the lifeblood of the economy, and they must be paid fast and fair, and if they are to have the confidence to invest and build the resilience, they’ll need to weather the storms ahead and they will need the support of funds like this more than ever”.
Peter McIntyre, head of business banking at HSBC UK, added: “SMEs are vital to the UK economy, and our customers have told us they are ready to invest for growth. The £15bn fund will help businesses to expand internationally, as well as here in the UK, supporting key sectors and driving investment across the regions.”