In a further sign of British business pitching in to limit the fallout of Carillion’s demise, Lloyds Bank today said it will make £50m available in credit to support its small business customers who are struggling as a result.
As the BBC points out, Lloyds was among the banks that stopped backing Carillion after the government refused to insure its debts.
Another lender, the Nationwide building society, has said it will take 250 maintenance and service jobs, formerly provided by Carillion, in house, and assume the contracts of a further 1,500 people.
This follows yesterday’s news that more than 90% of the Carillion staff employed on private sector contracts will continue to be paid by Carillion’s clients while its liquidation proceeds.
Lloyds’ pledge may be followed by similar moves by other banks after the UK government asked banks to help firms affected by Carillion’s collapse, the BBC reports.
It has been estimated that up to 30,000 firms in Carillion’s extended supply chains may be hit as it went into liquidation on Monday owing hundreds of millions of pounds.
Lloyds said it wanted to provide "reassurances" at an "unsettling" time.
Available now, the fund is for small businesses in Carillion’s supply chain that "may now be experiencing financial difficulty".
That could mean capital repayment holidays on loans for six months to start with, to help with cash flow problems.
The BBC asked Lloyds whether there was a contradiction in its offering help now but refusing to lend Carillion more money.
A spokesman said the banks withdrew funding from Carillion because of "viability", adding: "There are reasons the Carillion situation happened."
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