The bank has launched a £50m emergency fund to help small businesses within Carillion’s supply chain that have been affected by its recent liquidation.
The fund will provide a range of support for customers, including waiving upfront arrangement fees on overdrafts and invoice finance facilities to existing customers; and offering capital repayment holidays on existing loans for the most severely impacted customers
Lloyds Banking Group has announced it will support its small business customers as part of a range of emergency measures for businesses within Carillion’s supply chain which are now in financial difficulty as a result of the firm’s liquidation.
The fund will be open from today and existing small business customers can apply through their usual relationship contacts, who are available 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 and uncertainty.
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 cash flow shortages caused by the liquidation.
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, Lloyds Bank Commercial Banking, said of the support packages: “We know how critical it will be for businesses within Carillion’s supply chain to receive support with their cash flow, 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.”
Jo Harris, managing director, Business Banking, added: “Small businesses don’t normally have the cash reserves that larger businesses do, so any interruption to their cash flow 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.”