Lloyds Banking Group announces £50mn fund for companies in Carillion supply chain
Lloyds Banking Group has announced a £50mn package of support for its small business customers that have been hit by the collapse of Carillion.
It is part of a range of emergency measures laid out by the bank for those businesses within Carillion’s supply chain which are now in financial difficulty, as a result of Carillion’s liquidation.
The fund is open now and small business customers can apply through their usual relationship contacts, who are on hand to support businesses in need of assistance.
The fund is designed to support the working capital needs of small businesses within Carillion’s supply chain that may now be experiencing financial difficulty.
It will provide them, subject to credit approval, with arrangement fee-free overdrafts and, for the most severely impacted customers, with capital repayment holidays on loans for an initial six-month period, to help with cashflow shortages caused by the liquidation.
Customers will also be able use the fund to extend or draw new invoice discounting or factoring products, free of arrangement fees.
The Group’s support will also include guidance on working capital requirements to help firms unlock cash so they can manage their way through the difficulties they currently face.
Gareth Oakley, Managing Director, SME Banking, Lloyds Bank Commercial Banking, said: “We know how critical it will be for businesses within Carillion’s supply chain to receive support with their cashflow, to help them through the temporary challenge to their business.
“The measures launched today will ensure these small businesses have the financial support they need to get themselves back on track.”