UK Export Finance (UKEF) and the British Business Bank will launch a joint scheme next spring to widen access to finance for smaller businesses seeking to grow their exports, Chancellor Rachel Reeves announced on 12 July.

The scheme is aimed at the thousands of SMEs with export ambitions that, according to the government, often struggle to secure funding, particularly for lower-value working capital loans. It combines UKEF’s export finance expertise with the British Business Bank’s experience in supporting lending to smaller businesses.

UKEF will guarantee a portion of eligible portfolio-level losses, with participating lenders retaining a share of the risk. The British Business Bank will assess, onboard, and manage the commercial lenders taking part. According to the government, the model is designed to lower costs for lenders and enable them to scale lending to smaller exporters, using a guarantee structure it describes as tried and tested.

The scheme will be open to SMEs across all sectors and will support term loans and working capital facilities. The government says the eligibility criteria have been set broadly, with the aim of reaching businesses currently underserved by existing finance options.

Business Secretary Peter Kyle said, “Smaller businesses across the UK have the ideas, ambition, and talent to succeed on the world stage, but too often they struggle to get the finance they need to reach their full potential.

“This new partnership will help more businesses break into overseas markets, win new customers and turn local success into global growth.”

UKEF chief executive Tim Reid said the scheme supports the organisation’s aim of ensuring no viable UK export fails for lack of finance. “One of our main business priorities is to make it easier than ever for SMEs to harness the power of international markets,” he added. “By combining access to finance, digital services and targeted support with the British Business Bank’s expertise in unlocking lending, we can support a new generation of exporters.”

British Business Bank chief executive Louis Taylor said the initiative demonstrated how public finance institutions could combine their expertise to strengthen UK competitiveness.

UKEF’s network of Export Finance Managers will work alongside the British Business Bank’s Local Growth Team to direct smaller businesses to the scheme, across the UK.

The announcement follows UKEF’s 2025/26 Impact Report, published earlier the same week, which recorded more than £11 billion in loans, guarantees and insurance provided over the past year. The department said this supported up to 85,000 jobs and contributed up to £6.4 billion to the UK economy.