The £1bn fund is the largest package of support to be announced by HSBC for SMEs in the West Midlands, and includes a £500m package in Birmingham alone.
It has been introduced to meet growing demand from West Midlands SMEs, and is a significant increase from the £850m fund allocated to the region in 2015.
Martin Hanson, HSBC’s regional director for business banking in the West Midlands, said: “We want to be the bank of choice for West Midlands SMEs, reinforced through our desire to lend more to local businesses, by committing the funds to do so, and by making banking easier and cheaper to help our customers grow.
“There is a strong desire from ambitious local SMEs to grow their businesses, and we are responding by ensuring HSBC is providing the funds they need to realise these ambitions.”
Small business minister, Anna Soubry has encouraged small businesses to capitalise on the services being offered by lenders to support their growth.
“We have a record number of small businesses driving our growing economy and while the picture is improving, access to finance remains an issue for many of them,” she said.
“It’s absolutely right that banks such as HSBC continue to develop their support for smaller businesses.
“I also want to see more of these businesses taking advantage of what’s on offer, both from banks and alternative lenders, to help them grow, invest and create jobs for people.”
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