Barclays bank has announced plans for a major lending fund worth £14 billion pounds, which will help small and medium enterprises (SMEs) to flourish once the UK has left the European Union (EU).
Recently, the Bank of England’s Governor Mark Carney warned that a number of recent studies had revealed that more than half of UK businesses were still unprepared for the eventuality of a no-deal Brexit.
The package of support will be focused on supporting SMEs during uncertain times and is set to include; a £14 billion dedicated lending fund for UK businesses that turnover less than £25 million, a network of relationship management advisors and more than 100 national SME Brexit clinics and seminars.
The fund is expected to help provide loans, commercial mortgages and cash flow funding for investments.
These new initiatives are being brought in to help SMEs think about how they manage their cash flow and working capital, as well as processes including exporting goods abroad, labour, supply chain management and any other issues that arise regarding preparing for the country’s exit from the European Union.
This is not the only wave of support for businesses regarding leaving the EU. UK Finance recently launched a no-deal Brexit survival guide for SMEs, which included speaking to banks about extra finance as soon as possible and considering the impact of potential changes to trading arrangements.
Barclays Group CEO Jes Staley, said: “Barclays stands ready to help local businesses in towns, cities and rural communities, up and down the country, during this period of uncertainty.
“The £14 billion fund, along with our broader package of support, shows our commitment to the local businesses that are the backbone of the UK economy – we are here to help them plan for the future and invest for growth.”
“It is the entrepreneurs, the farmers, the manufacturers, the house-builders, the new tech firms, and countless other businesses, that will help the country deal with – and capitalise on – this period of change.”