Thursday, 18 January 2018

Lloyds Bank creates fund for firms hit by Carillion collapse

Lloyds Bank has said it will provide £50m to support its small business customers who are struggling after the failure of Carillion.

Lloyds was among the banks that stopped backing Carillion after the government refused to insure its debts.

The government has asked banks for assurances that they would help firms affected by Carillion's collapse.

Meanwhile, Nationwide building society has said it will take in-house jobs which were performed by Carillion.

It said it wanted to provide "reassurances" at an "unsettling" time.
On Wednesday, Business Secretary Greg Clark met representatives of some of the banks to seek assurances that they would support small businesses hit by Carillion's liquidation.

Afterwards, he said UK lenders were ready to give "tailored support" and flexibility when it came to repayments.

Lloyds said its fund, which is now available, was for small businesses within Carillion's supply chain that "may now be experiencing financial difficulty".

For the "most severely impacted" customers, that could mean capital repayment holidays on loans for six months to start with, to help with cash flow problems.

Jo Harris, Lloyds managing director of business banking, said: "Small businesses don't normally have the cash reserves that larger businesses do, so any interruption to their cashflow can have a significant impact on their ability to survive.

"By supporting our small business customers during this difficult time, we hope we can help as many businesses as possible to get back on an even keel as quickly as possible."

BBC       News.