HSBC has launched a £500m Green SME Fund, the banking giant said.
The new £500m 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 SMEs invest in green activities, HSBC clarified.
“This is the first green offering for small businesses with a cashback proposal in the UK,” it said in a statement.
“While the sustainable finance market has predominately focused on larger corporations, small and medium-sized enterprises are increasingly being described as the ‘new front’ in the battle against climate change,” HSBC added.
Speaking from COP26 in Glasgow, Ian Stuart, CEO 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 predominately 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.”