SME vs Corporate Borrowing in the UK: Who Is Getting More Business Loans in 2026?

In the UK, "who is getting more business loans" depends on whether you mean the total stock of borrowing (how much is outstanding) or new lending flows (how much is written in a period).

Three recent data points set the scene:

• SME loans outstanding were £197,867 million in October 2025 (about £197.9bn), based on Bank of England data. Bank of England, RPMZ8YH
• SME lending by the main High Street lenders was just under £4.2bn in 2025 Q3, and was 6.4% higher than the same quarter a year earlier, according to UK Finance. UK Finance, Business Finance Review 2025 Q3
• On a like-for-like Bank of England measure of gross lending (excluding overdrafts), large businesses typically take a much bigger share by value, for example £51,854 million in 2024 Q4 versus £17,166 million for SMEs. Bank of England, RPQZ8Y3 Bank of England, RPQZ8Y2

What counts as "SME" vs "corporate" in UK borrowing data?

There are two common ways the UK market gets split:

• Bank of England (Bankstats / MFI lending): data is often grouped into small and medium-sized enterprises versus large businesses. The Bank's database includes series on amounts outstanding and lending flows by size.
• UK Finance (Business Finance Review): focuses on SMEs, including breakdowns by firm size bands (for example, turnover under £2m versus medium-sized firms), plus approvals, utilisation, and deposits.

These sources can tell slightly different stories because they measure different lender sets and (sometimes) different products. That is not a problem, it is a clue about where the lending is happening.

Quick answer for 2026: who is getting more new lending?

If you measure "who is getting more business loans" as new lending volumes by value, large corporates are getting more in the Bank of England gross lending series.

Example: in 2024 Q4, gross lending (excluding overdrafts) was £51.854bn for large businesses versus £17.166bn for SMEs. In 2025 Q1, it was £48.212bn for large businesses versus £16.047bn for SMEs.

So in 2026, unless something structural changes, the "bigger firms get bigger volumes" pattern is still the default.

But SMEs can still be "getting more loans" in another sense

1) SME loan books can stabilise or grow even if corporates take more new volume

Bank of England data shows SME loans outstanding at £197,867m in October 2025.

One important caveat: the Bank flags a reporting population update that lifted SME amounts outstanding by £16bn in April 2025, and says the effect was adjusted out of flows for that month. That matters if you are eyeballing charts and thinking "SME borrowing jumped overnight". Bank of England, RPMZ8YH (notes)

2) The SME growth rate has turned positive again

On the Bank's 12-month growth rate measure for SME loans, the series is back in positive territory by late 2025, reaching 1.7% in September and October 2025.

For 2026 search intent, this is the key point: the SME loan book can be growing even if corporates still dominate total new lending by value.

What UK Finance says is happening to SME lending going into 2026

UK Finance's latest report (covering 2025 Q3) describes a steady rise in SME gross lending since early 2024, but with a cooling pace in the three months to September 2025.

Specific figures worth carrying into your 2026 planning:

• Gross lending by the main High Street lenders was just under £4.2bn in 2025 Q3, and 6.4% higher than the same quarter a year earlier.
• Approvals of new loans and overdrafts plateaued in Q3, which UK Finance links to a likely further slowdown in gross lending in late 2025.
• New loan approvals were up nearly 12% year-on-year by number, but approval values were slightly down, pushing the average approved loan down by about 12% to just under £250,000 in Q3.

Put simply: more approvals, smaller average ticket size. That is a very "2026" pattern if rates are easing but businesses are still cautious.

Why the Bank of England and UK Finance numbers can look far apart

You might notice the Bank of England's SME gross lending series (MFI reporting) shows monthly SME gross lending values in the billions, while UK Finance reports "High Street lenders" quarterly totals around £4bn.

That does not mean one is wrong. It usually means you are looking at:

• Different lender coverage (main banks versus a wider set of monetary financial institutions),
• Different product definitions (for example, "excluding overdrafts" versus broader "lending"),
• Different segmentation rules (business size and turnover bands).

For decision-making in 2026, the practical takeaway is: use UK Finance to understand SME approval momentum and size mix, use the Bank of England to understand system-wide flows and stocks.

So what should you expect in 2026?

If you are an SME looking for a business loan

• Expect scrutiny to stay high even if rates are falling. UK Finance's "plateau" message on approvals in Q3 2025 is a warning sign that lenders can tighten even in a recovery.
• Smaller loans may stay more available than big tickets. The drop in average approved loan size (to just under £250k) suggests lenders and borrowers have both shifted toward smaller commitments.
• Watch your "old debt" load. UK Finance notes ongoing Covid loan repayment pressures, including that 17% (by value) of Bounce Back loans had been repaid, and nearly 10% of firms extended to 10 years. That shapes affordability and cashflow in 2026.

If you are a corporate (large business) borrower

The Bank of England gross lending data shows large businesses taking far higher total gross lending volumes than SMEs in recent quarters. In 2026, that tends to continue because:

• Large deals move the numbers quickly (one refinancing can be bigger than thousands of SME loans),
• Large firms have more routes to funding, so bank flows can surge around bond market windows and refinancing cycles.

Even if SME lending is improving, the "more by value" headline usually remains corporate-led.

How to answer "who is getting more loans" for your 2026 use case

Use this quick framework:

• If you care about total pounds lent: start with Bank of England gross lending by size. Large businesses typically dominate.
• If you care about SME access and momentum: use UK Finance approvals and the split between small and medium firms, because this shows whether lenders are saying "yes" more often.
• If you care about the health of the SME loan book: track the Bank of England outstanding stock and the 12-month growth rate, especially around known methodology breaks like the April 2025 reporting update.

Conclusion

If you define "getting more business loans" as who receives more lending by value, large corporates are ahead in the Bank of England gross lending data, and the gap is large enough that it is unlikely to disappear in 2026.

If you define it as SME access and momentum, the story is more balanced. UK Finance shows SME lending has been rising year-on-year, but approvals flattened in 2025 Q3, and average approved loan sizes fell to just under £250k. That points to a 2026 market where funding is available, but often in smaller, more cautious increments.