Additional support announced for Carillion subcontractors


More support for Carillion subcontractors

Following on from our previous blog piece, more support for the businesses and workers affected by Carillion’s liquidation was announced Business Secretary Greg Clark.

Through delivery partners that include all the major high street lenders, the British Business Bank will make available up to £100 million of lending to small businesses who may not have the security otherwise needed for conventional bank lending using its Enterprise Finance Guarantee programme.

British Business Bank will provide support to make available up to £100 million of lending to small businesses

This will benefit small businesses, including the chain of subcontractors to Carillion, who may not have sufficient assets. These guarantees can be used to support overdraft borrowing and refinancing of existing debt.

The UK’s leading banks have also furthered their commitment to provide support to those affected with UK Finance confirming additional support for personal banking customers concerned about overdraft, mortgage or credit card repayments, as well as further financial support for small businesses to provide short-term relief to help keep them afloat.

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.”

This package is in addition to the more than £200 million already announced by Lloyds Banking Group, HSBC and RBS.