New CYBG funds as SMEs report finance problems

The owner of the Clydesdale and Yorkshire banks is making a further £6 billion available for lending to small and medium-sized enterprises (SMEs).

CYBG said it was committing the funds as it revealed the results of new research suggesting that more than a third of SMEs were still facing significant challenges in accessing growth finance.

More than 40% of the 750 SMEs surveyed said access to funding was a key factor in their growth strategy and 52% said they expected to seek a loan within the next 12 months.

The newly independent bank, which provided funding support to more than 2,000 mid-sized businesses in the past 12 months, said it expected to provide £1bn this year in day-to-day finance for SMEs, up to £200 million to drive growth in the agriculture sector and around £650m to property, financial services and in support of the UK’s industrial base.

The bank expects to inject around £400m to underpin business growth within the Scottish economy this year.

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

Scottish Economy Secretary Keith Brown said: “The Scottish Government is fully focused on increasing the level of funding available to SMEs, through the Scottish Growth Scheme. We support and welcome the expansion and deepening of financial support and advice for SMEs and providing easier access for SMEs seeking finance.”