The Government has announced a fund of support of £100 million for firms affected by Carillion (Fund ID: S31865) which has been welcomed by the Business Secretary, Greg Clark.
£100 Million for Firms Affected by Carillion
The British Business Bank is to offer support to provide up to £100 million of lending to small firms that may not have the security necessary to enable them to access conventional bank lending and standard business loans.
It will be achieved with the support of all major high street lenders, via the Enterprise Finance Guarantee Scheme. These guarantees can be used to support overdraft borrowing and the refinancing of existing debt.
Also, the country’s largest banks have extended their commitment to support affected companies. There will be financial support for small businesses in the form of short-term relief to help to keep them afloat.
Support for Individuals Affected by the Liquidation of Carillion
UK Finance has confirmed additional support for personal banking customers concerned about overdraft, mortgage or credit card repayments.
Business Secretary Greg Clark said: “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.
“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.”
British Business Bank CEO Keith Morgan said: “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.”
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