Five high‑street lenders have agreed an £11bn push for small and mid‑sized exporters, formalised on 26 January 2026 and updated on 2 February. NatWest, HSBC UK, Barclays, Lloyds and Santander will fund the loans from their own balance sheets, with UK Export Finance (UKEF) guaranteeing up to 80% of eligible facilities and giving banks automatic authority on working‑capital loans up to £10m. Ministers say the five collectively serve around half of British businesses; the deal was sealed at a Westminster roundtable chaired by Business Secretary Peter Kyle alongside UKEF’s Tim Reid. (gov.uk)

Think of this as standard bank lending with extra risk cover. The guarantee attaches to the lender’s risk rather than the borrower, so pricing, covenants and security still matter. For flexible financing not tied to a single contract, the General Export Facility gives participating lenders delegated support up to £10m per exporter, with terms up to five years and facilities typically up to around £25m. If funding must link to a named export contract, the Export Working Capital Scheme can cover up to 80% of pre‑ and post‑shipment needs. (gov.uk)

Eligibility is focused on export activity and a UK footprint. As a rule of thumb, firms should show either at least 20% of turnover from exports in one of the last three financial years or at least 5% in each of the last three, plus UK premises and employees. UKEF also expects production of goods, services or intangibles from the UK, while lenders overlay their own credit criteria. For larger, strategic facilities above £25m, the Export Development Guarantee may be more suitable. (gov.uk)

Access starts with your relationship manager and a clear ask: working capital, bonding or a revolving trade facility. In parallel, book a free conversation with your regional Export Finance Manager. EFMs provide impartial guidance on payment methods, insurance and suitable structures, and can help shape a proposal that gets to a faster bank decision. Coverage spans every UK region and contact details sit on GOV.UK. (gov.uk)

Expect two cost elements. First, normal bank pricing and fees. Second, a UKEF guarantee fee paid by the lender and usually passed through to the borrower; UKEF sets this as a proportion of the interest margin on the facility. Discuss security, FX and any documentary requirements up front to avoid surprises later. (gov.uk)

A quick, illustrative example. A West Midlands precision engineer with £14m turnover wins a £3.8m order from a US buyer on 60‑day terms. A £2m revolving trade loan under the General Export Facility covers materials and payroll, while a standby letter of credit reduces counterparty risk. With 80% cover at the lender level, appetite improves, but the company remains liable for the full amount it borrows and must meet covenants. Currency exposure is managed by documenting a simple hedge policy and setting internal trigger rates before purchase orders are placed.

What this scheme does not do: it does not remove credit assessment, waive security requirements or guarantee your customer will pay. Banks will still scrutinise cash generation, order concentration and supply‑chain resilience. Government backing reduces lender risk; it doesn’t replace the need for a viable plan and credible execution.

Ministers frame the move as part of a wider growth push, alongside action on late payments and the new Business Growth Service. Those measures sit next to the lending package agreed on 26 January 2026. (gov.uk)

Context matters. Non‑bank participation in UKEF programmes has thinned: Newable, the only non‑bank lender active in the General Export Facility, paused new lending in 2025. That left banks as the main channel for delegated guarantees, making strong bank relationships even more important for exporters. (thetimes.co.uk)

For SMEs, the immediate to‑do list is straightforward. Pull together rolling 12‑month cash flows, your export pipeline by country, latest management accounts and a two‑page note on payment terms, FX approach and available security. Book time with your bank and an Export Finance Manager in the same week to compress timelines; in our experience, that combination produces faster decisions.