Northern exporters have been promised a fresh route to growth finance after the UK’s five biggest banks signed an £11bn lending commitment on 26 January 2026. The Department for Business and Trade says the package, backed by UK Export Finance, targets small and mid‑sized firms in every region. “Small businesses are ready to take on the world,” said Chancellor Rachel Reeves. (gov.uk)

The deal brings together NatWest, HSBC UK, Barclays, Lloyds and Santander, which together serve around half of British firms. Business Secretary Peter Kyle convened the Westminster roundtable where the agreement was sealed, saying exporters need “means, motive and opportunity” - and that this support is designed to provide it. (gov.uk)

Here’s how it will work for a tooling maker in Sheffield or a Teesside chemicals supplier. Loans will come from the banks’ own balance sheets, with UKEF guaranteeing up to 80% of eligible facilities. For working capital, banks can apply UKEF’s guarantee automatically on loans up to £10m, speeding up decisions. The guarantee supports the lender - firms remain responsible for the debt - and a UKEF fee forms part of pricing. (gov.uk)

For companies dealing with long payment terms or overseas buyers asking for bonds, UKEF’s General Export Facility can back trade loans, bonding lines and letters of credit, typically up to £25m with terms to five years. It is aimed at SMEs that can show either 5% export turnover over three years or 20% in one year. (gov.uk)

What will it cost? Pricing will vary by risk, sector and term. The Bank of England’s base rate sits at 3.75% after a December cut, and banks will add a margin plus the UKEF fee. The government backing can improve terms, but lenders will still expect credible cashflow and a clear route to repay. (bankofengland.co.uk)

Where do Northern firms go first? Start with your bank relationship manager and ask about UKEF‑backed options, particularly the General Export Facility. UKEF also has Export Finance Managers covering the North East, North West and Yorkshire & Humber who can speak directly with businesses and banks to help move applications along. (gov.uk)

Will the money reach beyond London? The British Business Bank’s Nations and Regions Tracker 2025 shows the number of bank loan and overdraft facilities for smaller firms rose 33% in 2024, though values rose just 4%. It also finds usage is lowest in highly deprived areas - a reminder that the smallest exporters need tailored support. (british-business-bank.co.uk)

Alongside bank lending, the Northern Powerhouse Investment Fund II has become a regular part of the finance mix. Launched in March 2024 with £660m, NPIF II had delivered over £180m into Northern firms by October 2025 through debt and equity - separate from, but often complementary to, UKEF‑backed bank finance. (british-business-bank.co.uk)

There are pressure points. Since mid‑2025, Newable - the only non‑bank participant in UKEF’s General Export Facility - has paused new lending, leaving delivery largely with the big banks. That matters for micro‑exporters needing smaller, faster facilities. (gtreview.com)

For manufacturers in Leeds, Sunderland or Burnley lining up overseas orders, the prep is familiar: current management accounts, order pipeline, and a clear working‑capital ask. For GEF, UKEF says firms usually need at least 5% export turnover over three years or 20% in one year; earlier‑stage founders should also look at NPIF II and their local Growth Hub. (ukexportfinance.gov.uk)