Carillion collapse: Government announces support for those affected
GETTY / STOCK A package of help for SMEs has been announced
UK Finance has confirmed an additional multi-million pound package for SMEs and extra help for customers concerned about their mortgage or credit card payments. Industry and government continue to work together to ensure businesses and workers are supported following Carillion’s liquidation. A further package support for the businesses and workers affected by Carillion’s liquidation was welcomed today by Business Secretary Greg Clark. Through delivery partners that include all the major high street lenders, the British Business Bank will provide support to 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.
GETTY / STOCK SMEs and workers who lose out because of Carillion's collapse will receive government support
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. Greg Clark
This will be of benefit to small businesses including the chain of subcontractors to Carillion who may not have sufficient assets as security to access conventional loans. 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. There will also be further financial support for small businesses to provide short-term relief to help keep them afloat.
GETTY / STOCK Greg Clark has announced these measures to help those further down the Carillion supply chain
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.”