Multi-million pound support package announced for Carillion supply chain
A multi-million pound support package has been earmarked for the SMEs and individuals most affected by the Carillion liquidation.
The British Business Bank has pledged to provide up to £100M of lending via the Enterprise Finance Guarantee and in collaboration with its delivery partners – among them many of the high streets major lenders.
This measure will benefit SMEs in the Carillion supply chain who may lack sufficient assets as security to access conventional loans. Crucially, these guarantees can support overdraft borrowing and refinancing of existing debt.
Building on this momentum, UK Finance is also rolling out additional support for personal banking customers anxious about overdraft, mortgage or credit card repayments, in addition to financial support for SMEs to provide short-term relief and help keep them afloat.
“We want to signal very clearly to small and medium sized businesses who were owed money by Carillion that they will be supported to continue trading,” said Business Secretary Greg Clark.
“The banks have responded to my request by agreeing to support businesses and individuals affected. This further guarantee will help those businesses who may not be able to provide the usual security for a loan.
“I will continue to work closely with business organisations, trade unions and banks to actively support those affected by Carillion’s insolvency.”
Keith Morgan, Chief Executive of British Business Bank, added: “The Enterprise Finance Guarantee (EFG) is an important option for smaller businesses who need access to finance, but may not be able to meet a provider’s normal security requirements.
“To help in these exceptional circumstances, we have designed additional flexibility into EFG that could be particularly suitable for firms in the Carillion supply chain. We would encourage lenders to work with their customers to use these new flexibilities to meet their needs.”
The newly announced support follows a previously announced package from Lloyds Banking Group, HSBC and RBS – worth in excess of £200M.
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