GBSLEP
Back to all news

Funding support announced for Carillion supply chain


Monday 5th February

Following on from the weekend’s announcement by the Business Secretary, Greg Clark, I have the following update:

 

SUPPORT PACKAGE FOR CARILLION SUPPLY CHAIN ANNOUNCED

 

Through delivery partners that include all the major high street lenders, the British Business Bank has announced a support package of £100 million worth of lending to small businesses who may not have the appropriate credentials for conventional lending using its Enterprise Finance Guarantee programme.

 

This will be of benefit to SMEs involved in the interconnected Carillion supply chain. These guarantees can be used to support overdraft borrowing and refinancing of existing debt. Since the launch of the Carillion Helpline, most calls have been focused on when supply chain businesses will receive payment, indeed, whether they will be paid at all. Thus, this weekend’s announcement is a welcome step for those supply chain businesses seeking answers in the wake of the liquidation. The Black Country Chamber of Commerce campaigned for a support package such as this in the immediate aftermath of Carillion’s collapse and welcome the government’s proactive approach to support business.

 

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 Minister, 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.”

 

Keith Morgan, British Business Bank CEO, 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.”

 

Thank you,

Dan



*: danielturner@blackcountrychamber.co.uk


(: 01902 912334




Back to all news & case studies

Request A Call Back

 
 
 
 

Tailored support for you

Birmingham wholesaler adds spice to expansion plans following funding package from Maven

Find out more

Growth Through Exporting - Case Study - Rachel Simpson

Find out more

Mentoring for Growth Case Study - LG Davis

Find out more

Subscribe to our newsletter

All the latest GBSLEP Growth Hub news, updates and opportunities delivered to your inbox.

Click here to see how we will handle your personal data.