CYBG to lend £6bn to SMEs

CYBG PLC is to make a minimum of £6bn of lending available from 2017 to 2019 to help boost the growth of UK SMEs.

The owner of Clydesdale and Yorkshire Banks will make significant amounts available through 2017, including: £1bn to support the day-to-day financial needs of SMEs, £350m for medium-sized businesses looking to grow, £200m for SMEs in the agricultural sector and £650m to other key sectors that provide lending for major property purchases. 

The commitment comes after a survey conducted on behalf of CYBG found that 35% of SMEs continue to find accessing finance from banks a challenge. 

Since first being listed as an independent bank last year, CYBG’s core SME business returned to growth for the first time in five years.

“With our rich and longstanding heritage across core regional economies, we recognise the important role local businesses have in forming the backbone of the UK economy, by providing employment and financial security for business owners and their employees,” said Gavin Opperman, group customer banking director at CYBG. 

“CYBG has been acting as a regional economic champion for over 175 years and we have a history of supporting businesses at critical moments in their growth.”

Gavin added that its focus was on developing lifelong relationships with its customers via its business banking sector. 

“…We have developed the expertise to understand the varying challenges businesses face at different stages in their lifecycle. 

“With more than £2bn in funding available in 2017 and £6bn over the next three years, CYBG is proud to finance the innovation and creativity of small and medium enterprises across the UK.”

Margot James, small businesses minister, said the announcement would be welcome news for many SMEs across the country. 

“Supporting business to grow is one of the 10 pillars of the government's industrial strategy green paper and we are committed to creating the right conditions for SMEs to thrive as part of our plan to build an economy that works for all. 

“I am especially pleased to see that 90% of this credit facility is destined for businesses outside London and the South East, with a focus on Yorkshire."

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