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Scaling sustainable finance for SMEs: Practice notice for application of SLLP and insights from the loan markets

The Practice Note provides practical guidance on applying the existing Sustainability-Linked Loan Principles (SLLP) in SME contexts, supporting a proportionate approach while maintaining all mandatory requirements of the framework and preserving the integrity of the sustainability-linked loan product. It does not create a new label, category or alternative set of principles for SMEs.

Alongside the Practice Note, the LMA has also published Scaling Sustainable Finance for SMEs: Insights from the Loan Markets, which sets out the market context, survey findings and analysis that informed its development. The report highlights both growing lender support for SME sustainable finance and the practical barriers that continue to constrain wider adoption and scalability.

To access the publications, please see:

• Practice note on the application of the Sustainability-Linked Loan Principles to SMEs
• Scaling Sustainable Finance for SMEs: Insights from the Loan Markets