NatWest is tripling its “growth fund” for small businesses, after identifying 2,000 customers it believes will need extra support to deal with Brexit.
The lender has made an extra £2 billion available in the fund, bringing the total to £3 billion.
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The bank has said that it’s approaching business customers that it thinks will need extra cash. They can then use the cash for supply chain support and to mitigate potential financial risks caused by the UK’s exit from the EU.
Brexit market analysis
The move follows what NatWest calls an “in-depth analysis” of both its existing business customers and the UK economy more generally.
It is understood that of the £1 billion that was already available, some £900 million has already been extended to NatWest customers.
“Uncertain period ahead”
The bank’s chief executive of commercial and private banking, Alison Rose, said: “The ongoing Brexit process will require businesses to think strategically and tactically about how to navigate what is still an uncertain period ahead.
“We are committed to helping UK businesses access the right financing products so they can meet their short- and longer-term trade and working capital needs, whatever the outcome of the Brexit process.”
The bank has said that the new funding will be available on the same terms as existing finance, and will not be priced higher than normal NatWest business credit.
It is proposed that the transition period for the UK to leave the EU will begin on the 29 March 2019, and will end on 31 December 2020.