NatWest and RBS have made £1.1 billion of funds available to support small businesses in an attempt to boost SME confidence.
Back in May, HSBC launched a new £8 billion fund for small and medium-sized companies, and this news is yet another sign of how highly banks value the UK’s self-employed.
Business loans of up to £500k
The banks - both part of the Royal Bank of Scotland Group - are offering fixed-rate loans to British businesses with turnovers of up to £2 million. Each business can apply to borrow up to £500,000, with no set-up or repayment fees.
NatWest and Royal Bank of Scotland announce £1.1bn to support the growth plans of small businesses: https://t.co/2knOtH34PL— RoyalBankofScotland (@RBSGroup) July 18, 2016
Given the current climate of economic uncertainty, RBS have said they’re hoping to give businesses the confidence to think about growth, knowing they can repay without penalty if they decide not to use the money.
Marcelino Castrillo, RBS’ Managing Director of Business Banking, said:
“With the creation of this £1.1bn fund we want to assure small businesses that we have funds available and we want to lend.”
The importance of small business
The banks say that they’re striving to make their SME products simple and transparent, recognising the importance of small businesses to the UK economy.
Earlier this year they removed early repayment fees on small business loans, and this followed their move to abolish arrangement fees last year.
As RBS point out, small businesses account for 99 per cent of private sector businesses and almost half of private sector employment.
The bank’s also set up a team of ‘Business Growth Enablers’ to host regular education events for small businesses. Open to both customers and non-customers, topics include exporting and cyber security.
Will you take advantage of the new loan money that’s being made available to small business? Let us know in the comments.