Banks launch £225m Carillion emergency fund after government task force “challenge” | City A.M.
Three of Carillion’s former lenders today made £225m of assistance available to small businesses hit by the collapse of the insolvent contractor.
HSBC opened a £100m fund, Royal Bank of Scotland made £75m available and Lloyds launched £50m of help, it was announced this evening.
After Carillion’s collapse on Monday morning, the government stepped in to guarantee payments to companies delivering public services but private sector suppliers were only granted 48-hours of funding – this ended on Wednesday evening.
A newly-formed Carillion task force today welcomed the launch.
“I welcome this quick and positive move by banks including Lloyds, HSBC and RBS. This follows my meeting with the banks yesterday where I challenged them to see what further support they could provide for SMEs affected by Carillion’s insolvency,” said business secretary Greg Clark, who is chairing the task force.
It is essential that small businesses exposed are given the support they need by their lenders, and I look forward to other banks following suit.
Read more: UK banks have just leapt to the rescue of Carillion’s ailing suppliers
The task force, which included representatives from business, construction trade associations, the trade unions, lenders and government, was hastily pulled together and met for the first time this afternoon.
A spokesperson for the government said: “We have created a task force to continue to support and monitor the impact on small businesses and employees who have been affected by Carillion’s insolvency.”
“The measures launched today will ensure these small businesses have the financial support they need to get themselves back on track,” said Lloyds managing director of SME banking Gareth Oakley.
Meanwhile, Nationwide said earlier today it will save 250 Carillion contractor jobs by bringing them in-house.
“Our contractors perform a vital and valued role for the Society. During an unsettling time for Carillion employees we felt it was important to provide them with some reassurances,” it said in a statement.
Read more: Carillion’s banks were left on the sidelines while shares plummeted