HSBC rolls out £500m of funding for green-thinking UK and Scottish SMEs

HSBC UK is backing the transition to a low carbon economy with £500 million of funding for green-thinking smaller businesses.

The dedicated Green SME Fund is available for businesses with a turnover of less than £25m and will offer 1 per cent cashback on loans, starting from £1,000 to help small and medium-sized enterprises (SMEs) invest in green activities.

It follows the banking giant’s global commitment to provide between $750 billion (£560bn) and $1 trillion of financing and investment to support its customers over the next ten years.

Ian Stuart, chief executive of HSBC UK, said: “Companies of all sizes and sectors have a role to play in the journey to net zero, however the sustainable finance market has been predominantly focused on larger corporations. It’s critical that access to funds isn’t a barrier for small and medium sized businesses working to achieve lower carbon emissions.”

HSBC UK's Green SME Fund is available for businesses with a turnover of less than £25m Picture: Kirsty O'Connor/PA Wire

Meanwhile, British Business Investments has announced a £5m commitment to green economy investor Green Angel Syndicate, to support early-stage UK businesses operating in the green technology sector.

The funding is being made through the Regional Angels Programme, which seeks to reduce regional imbalances in access to early-stage equity finance.

Judith Hartley, chief executive of British Business Investments, a commercial subsidiary of the British Business Bank, said: “Our Regional Angels Programme is designed to address imbalances in access to early-stage finance in the UK and to increase the overall amount of capital available to smaller businesses through early-stage investors such as Green Angel Syndicate.

“This £5m commitment from British Business Investments means increased support for green technology sector early-stage businesses across the UK.”

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