Chancellor Rachel Reeves announced a new funding package aimed at giving small and medium-sized enterprises easier access to capital during her 2026 Mansion House speech. The plan centers on widening government‑backed loan guarantees so that fast‑growing firms can scale and reach overseas markets. It adds an enlarged Growth Guarantee Scheme and introduces a portfolio grant scheme for exporters.
SMEs will benefit immediately.
The Growth Guarantee Scheme, run by the British Business Bank, sits at the heart of the initiative. It provides a 70 % government guarantee on commercial loans for eligible companies. By 2028/29 the programme is expected to enable an extra £2 billion of lending, opening credit lines for thousands of businesses that previously struggled to obtain financing.
To make loans more attractive, the government is adjusting several key terms. For borrowing up to £1.1 million, the maximum repayment period is being extended from six to ten years. At the same time, the ceiling on loan size is rising from £45 million to £54 million. The bank projects that each pound spent on the guarantee will generate about ten pounds of additional credit from commercial lenders.
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The scheme is slated to launch in spring 2027 and will operate alongside the existing ENABLE programme. That initiative already has £500 million of capacity allocated for firms with strong intellectual‑property portfolios. Together, these measures form a broad set of reforms intended to simplify the path to financing for growing companies.
A new portfolio guarantee scheme is also being introduced to help firms push into foreign markets. Delivered jointly by UK Export Finance and the British Business Bank, it will give exporters the lending support they need to fund overseas activities.
Irene Graham OBE, chief executive of the ScaleUp Institute, praised the announcement. She said the expanded guarantee scheme and the ENABLE programme, combined with the fresh export services, give innovative businesses a stronger foundation for international growth.
ENABLE’s focus on intellectual‑property‑rich firms means that companies with patents, designs, or software assets can leverage those intangible assets as collateral, thereby unlocking further borrowing potential. By earmarking half a billion pounds for this purpose, the government signals confidence that IP‑driven innovation will be a cornerstone of future export growth.