From Yahoo Finance: 2025-06-17 09:55:00

UK high street banks saw business lending increase to £4.6bn in Q1 2025, up 14% YoY. SMEs drove this growth, with agriculture, manufacturing, wholesale, and retail leading. Loan approvals rose by 37%, with overdrafts up 8%. Despite a lift in approvals, values were lower than the previous year.

SMEs in the UK economy are benefiting from increased lending, with small businesses accessing more finance than last year. UK Finance calls for the Growth Guarantee Scheme to be made permanent, supporting further SME lending. Banks remain committed to providing finance for investment and growth.

A recent study showed 71% of UK SMEs experienced growth in the past year, up from 46% in 2024. The positive trend in SME lending by high street banks reflects the strong performance of small businesses in the UK economy.

Read more: UK Finance reports rise in SME lending by high street banks