Start-up loans worth £200 million are being made available to small- to medium-sized businesses (SMEs) in Sussex.

Launching the new loan fund, HSBC said it proved the bank was supporting and lending to SMEs which have ambitions to grow in 2014.

Meanwhile the bank released a report today which finds economic performance in the UK is outperforming the Eurozone.

The report ‘Business of Growth’ found the economy is nowsix to nine months into a strong and sustained recovery and identifies unanimous consensus among leading independent forecasters for a substantial pick-up in economic growth in the next two years.

It indicates an average in forecasted GDP growth for 2014 of 2.7% – its highest level since 2007.

Nikki Wile, HSBC commercial director for Sussex, said: “Business confidence in Brighton has returned, and there is a huge buzz across city and surrounding area at the moment. Businesses are investing for growth, which is reflected in the uplift in support we’re providing to SMEs across all sectors.

“Our lending and pipeline has never been higher, with businesses looking for finance to invest in new equipment, production line, IT systems and workforces, and increased working capital to fund new contracts. Low levels of unemployment in Brighton, another key indicator of business confidence, make staffing a key consideration for businesses and one they are investing in.

“Over the past couple of years, businesses have been cautious and there is still a perception that the support isn’t there, or the time isn’t right. The opposite is true, particularly with trade volumes expected to grow and the domestic market doing well.

“The fastest growing businesses have a solid management structure, focused plans and without doubt the most dynamic businesses are looking beyond the UK to achieve this growth. As a bank, we’re very well placed to support forward thinking SMEs with these ambitions.”

The HSBC report highlights the constant upwards revision of growth and rising business confidence.

It also predicts an increase in fixed investment in physical assets including machinery, premises and stock – of 7.1% in 2014.

This compares to a pre-recession average annual investment growth of 3.6%.