Lloyds launch £50m fund for small businesses in Carillion supply chain

Lloyds launch £50m fund for small businesses in Carillion supply chain
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Lloyds Banking Group (LBG) has unveiled a £50 million package to support its small business customers in Carillion’s supply chain hit by its liquidation.

The fund will be open from today and existing small business customers can apply through their usual relationship contacts, who are on hand to support businesses in need of assistance.

It is designed to support the working capital needs of small businesses within Carillion’s supply chain that may now be experiencing financial difficulty.

Subject to credit approval, it will provide them 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.

“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,” said Gareth Oakley, MD of SME Banking, Lloyds Bank Commercial Banking.

“The measures launched today will ensure these small businesses have the financial support they need to get themselves back on track.”