Metro Bank Commits £100m To SME Lending As Part Of Government Initiative

Metro Bank Offers Lending Lifeline To SMEs As Chairman Departs

Metro Bank has been named as a primary banking partner for a government-backed coaching service for SMEs called the Growth Accelerator.

The bank has pledged up to £100 million in lending for small and medium sized enterprises.

Craig Donaldson, chief executive of Metro Bank, said that as a growing business itself, the bank was pleased to be able to lend money to Britain's SMEs.

"Research has proven that high-growth firms make up just 7% of all UK firms - yet they generate around half of all new jobs and show particular resiliency during recession. It’s our responsibility to ensure that these firms have the support and the access to credit they need to expand," said Donaldson.

“More than half of all Metro Bank’s lending is to SMEs and commercial enterprises. Businesses want to borrow from us because our common sense, relationship based approach to credit decisions means that we judge each business on its individual merit."

RBS Natwest has also agreed to promote the service across its nationwide network to its UK SME customers, who currently make up 25% of market share.

The government’s £200m Growth Accelerator service matches eligible companies with business experts to identify barriers to growth and ways to overcome them, including issues such as securing finance, commercialising innovation or developing leadership and management capability.

More than 1,000 businesses have joined the programme since it was launched in May 2012.

Business secretary Vince Cable said in a statement: “Growth Accelerator is designed to help these next generation businesses fulfil their potential. Getting access to finance on reasonable terms is crucial to their success... It is good news for businesses that new entrants like Metro Bank are energising the market to support dynamic, fast-growing UK businesses."

The news comes on the back of Metro Bank's announcement that its chairman Anthony Thomson has decided to step down.

It's understood that the bank had been expecting Thomson's resignation for some time as he was keen to "revolutionise" another area in business.

Thomson is expected to make way for an as-yet-unnamed successor at the end of 2012.

Vernon W Hill, Metro Bank's co- founder, said Metro Bank would not have existed without Thomson's vision, adding: "The board directors and every one at Metro Bank salute him for his invaluable contribution, hard work and foresight.”

Thomson said the time spend at Metro Bank was the best five years of his 30 year career.

“I am confident that the board, executive team and my other colleagues at the bank will continue to build upon the vision that Vernon and I first had back in 2007, to revolutionise banking in the UK," he continued.

"I plan on taking a break then continuing to develop my various business and philanthropic interests.”

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