British small businesses are set to benefit from a powerful new government initiative aimed at helping them grow, trade, and compete globally in a fast-changing world economy.
In a significant move to give SMEs more financial muscle, the UK government has expanded its support package by £80 billion, including £20 billion in new backing for UK Export Finance (UKEF) and enhanced access to loans of up to £2 million through the British Business Bank's Growth Guarantee Scheme.
This means thousands of British SMEs—whether they're exporters, manufacturers, or local service providers—can now access affordable, government-backed finance to scale their businesses, navigate new tariffs, and explore overseas markets with greater confidence.
From household names like Rolls Royce to niche players like Alicat Workboats, many businesses have already seen success with similar programmes. With this expanded funding, more small firms are expected to follow suit—boosting exports, creating jobs, and driving growth from every corner of the country.
"Our message to British business is clear – we've got your back," said Jonathan Reynolds, Secretary of State for Business and Trade. "This package will supercharge businesses looking to trade around the world."
The announcement comes as part of the UK's Plan for Change, a strategic blueprint for economic transformation that emphasizes partnerships with businesses to unlock innovation and prosperity. It also follows a week of high-impact decisions by the government, including steps to protect British Steel jobs, support green vehicle manufacturing, and revitalize regional transport hubs like Doncaster Sheffield Airport.
Chancellor Rachel Reeves emphasized the importance of adapting to the new global landscape. "The world is changing, and it's more important than ever to back our world-leading businesses," she said. "We are going further and faster to boost growth, but we cannot do it alone."
Through UKEF's Export Development Guarantee, SMEs will be able to access partial loan guarantees to reduce the risks of borrowing—especially for those grappling with new tariffs or global trade disruptions. Up to £10 billion of the funding will be dedicated to helping such businesses weather short-term challenges and position themselves for long-term success.
In parallel, the British Business Bank will inject £500 million into its Growth Guarantee Scheme, enabling more SMEs to get financing even if they've struggled with traditional lenders in the past. The scheme provides a 70% government-backed guarantee, opening doors for businesses to invest in growth, innovation, and expansion.
With additional funding already committed to startup loans, small builders, and high-growth companies, the UK government is doubling down on SMEs as the engine of future economic resilience.
These latest steps come as the UK deepens its trade relationships with key partners like India, South Korea, Switzerland, and the Gulf Cooperation Council—unlocking new market access and opportunities for British exporters.
For small businesses looking to grow and go global, the message is clear: the support is here, the opportunities are growing, and the time to act is now.
