Small and medium-sized businesses got a £10bn boost today after HSBC unveiled a new lending fund to support their growth.

The £10bn fund is part of a broader package of support offered by the UK bank to make it cheaper and easier for smaller businesses to borrow money. It follows the £8bn fund HSBC launched last year.

The bank has also announced a reduction in the personal guarantee fee from £80 to £10 for any loan above £10,000 and a free banking offer of up to 18 months followed by a year-long fixed price account tariff.

HSBC has also launched a new online credit eligibility checker that will give new customers a decision on loans of up to £30,000 in under three minutes.

HSBC’s head of UK commercial banking Ian Stuart said: “SMEs are the lifeblood of the UK economy and we are committed to providing the finance and support they need to realise their business goals.”

Small business minister Anna Soubry said that access to finance remains an issue for smaller firms. “It’s absolutely right that banks such as HSBC continue to…support smaller businesses,” she added.