New support available for small exporters from British Business Bank

A new scheme has been announced by Rachel Reeves to support the thousands of export-based small businesses that struggle to secure finance.

The initiative, backed by UK Export Finance (UKEF) and the British Business Bank, will support businesses seeking lower-value working capital loans and term loans to expand into international markets. It aims to level the playing field for smaller firms, which have been hit particularly hard by post-Brexit red tape. 

Due to launch in spring, the scheme is one of several measures announced this month aimed at bolstering international trade. Learn exactly what the scheme involves, and how it stacks up to the support that’s already available to small exporters.

The government is launching a life raft for small UK export businesses

UK exporters have been navigating difficult waters. Due to the residual effects of Brexit and rising global trade tensions, the amount of goods we export fell by 12% from 2019 to 2025, despite goods exports growing by more than 7% globally during the same period. 

To take the load off small businesses, the new joint initiative for exporters combines the British Business Bank expertise in unlocking funding for smaller businesses, and the UKEF’s export finance specialism. Combined, the scheme will see UKEF guarantee a portion of eligible portfolio-level losses on export lending, while the British Business Bank assesses and manages the commercial lenders taking part.

Lenders will still carry a share of the risk themselves, but the guarantee focuses on bringing their costs down enough to make smaller, lower-value working capital gains worth offering. From spring 2027, it will be open to export-focused businesses across all sectors. 

The scheme is ultimately designed to make it easier for small exporters to compete internationally. As Business Secretary Peter Kyle puts it, “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.”

The scheme was announced in Rachel Reeves’s Mansion House speech on the 12th of July, where the Chancellor also revealed the government would be expanding its Growth Guarantee Scheme by £6.5 billion. The extension of the initiative, which offers a 70% government guarantee to the lender, is calculated to help 33,000 businesses over the next three years.

How to access the support scheme next spring

The joint initiative isn’t live yet, so the official application process hasn’t been published. 

However, based on other UKEF and BBB schemes, it’s likely you’ll have to apply through a bank or accredited commercial lender, rather than the government bodies themselves. This is because the guarantee sits behind the scenes, covering a portion of the lender’s risk. 

Essentially, just treat the application as you would for a normal business loan. The British Business Bank will publish a list of participating lenders, helping to guide applicants in the right direction once the scheme goes live. 

In the meantime, you can register your interest and gain free regional one-to-one advice with UKEF’s Export Finance Managers. They’re a nationwide team of specialists who work directly with businesses to help them learn more about their export finance options.

What other help is available for small exporters?

This scheme doesn’t exist in isolation. It builds on a raft of policies designed to support UK exporters. 

The UK trade strategy already promises £5 billion in new export opportunities, including a Small Export Builder that gives smaller sellers automatic access to UKEF credit insurance, starting at £15,000 and rising in increments of 50% as buyers pay on time. 

As per Reeves’ recent announcement, the Growth Guarantee Scheme has also expanded its offering. Aside from being given a £6.5 billion boost, its eligibility has widened from businesses with £45 million to £54 billion turnover, and its loan terms have extended from six to ten years – widening the pool of businesses that will be able to receive relief. 

Taken together, these schemes should give small businesses in the export industry enough tools to weather the storm. But with the flagship UKEF BBB scheme still almost a year from launch, the real test will be whether the support arrives quickly enough for small export businesses already feeling the squeeze