Carillion subbies get £100m government loan lifeline

Grant Prior 9 months ago
Share

Subcontractors struggling in the wake of Carillion’s collapse can now apply for £100m in government-backed loans.

The money will be made available by lenders via the state backed British Business Bank using the Enterprise Finance Guarantee programme.

The government said: “These guarantees can be used to support overdraft borrowing and refinancing of existing debt.”

Business Secretary 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.”

British Business Bank CEO Keith Morgan said: “The Enterprise Finance Guarantee 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.

UK Finance Managing Director, Commercial Finance Stephen Pegge said: “UK banks are working with government to support customers and businesses who have been impacted by the Carillion liquidation.

“The enhancement of the Enterprise Finance Guarantee by the British Business Bank will help those facing temporary cash flow issues to access the finance they need to support their businesses through this period.”

This package is in addition to the more than £200m already announced by Lloyds Banking Group, HSBC and RBS.

For more information on the British Business Bank click here

Latest news

Sisk edges into UK profit after two years of losses

UK revenue drops by over half to £188m from 2015 peak
26 mins ago

Jacobs to sell energy and chemicals arm for £2.5bn

US consulting giant continues business shake up
1 hour ago

Hill bags £300m Aldershot and Farnborough town centre revamps

Four major schemes will deliver 750 new homes
1 min ago

Bid race for £25m Poynton Relief Road

Cheshire East Council calls up firms for 3km relief road project
2 hours ago

Morgan Sindall appeals to construction career breakers

Contractor offers return to people who have taken time out from the industry
1 hour ago

Huge fit-out team starts work on £333m Aberdeen centre

More than 850 people working on interior of event complex
30 mins ago

Cemex trucks become mobile safety warnings

Vehicles carry campaign message aimed at pedestrians
50 mins ago

Bouygues profit warning over biomass plant problems

Two UK power jobs drag down results at group construction division
3 days ago

Site virtual reality swings London skyscraper planning appeal

48-storey Isle of Dogs tower secures planning at appeal
3 days ago

Boost your online presence – join the new Enquirer Directory

New site for suppliers and buyers will showcase their products, services and latest stories
6 months ago

Gatwick Airport sets out £500m runway upgrade plan

Standby runway to be moved 12m to bring into routine short-haul service
3 days ago

Engie wins £195m Kingston Uni student halls revamp

Work to start on student accommodation upgrade next June
3 days ago

First iKozie micro-home community gets thumbs up

Sixteen micro-flats to be built in Worcester
3 days ago

Plans for £450m Leeds hospital expansion

A new children's hospital and day patient block will be built at Leeds General Infirmary
4 days ago

Tool theft hits half of construction companies

Project delays and cost overruns caused by crime wave
4 days ago

Betting Spy: Chelsea and Fulham to land double

West Londoners can both come good this weekend at 3/1
3 days ago

RG Group starts tallest building in Yorkshire

Landmark student skyscraper will rise to 37 storeys
5 days ago

Government calls for fire tests on high-rise spandrel panels

Spandrel panels now under the spotlight as fire spread risk in tall buildings
4 days ago

Surveyors report rising workloads but Brexit fears loom large

Workloads up in Q3 but credit squeeze is becoming a major issue
4 days ago

Voice controlled windows tint on command

Latest tech means you can talk to your windows
5 days ago

Suffolk council to renew £750m East of England framework

PQQs published next month for revamped public building framework
4 days ago

Police swoop on Romanian site slave labour gang

Eight arrests in east London as police target construction human trafficking
5 days ago

£248m awarded to reclad 135 unsafe housing blocks

Government releases first tranche of £400m recladding fund
5 days ago

Crest Nicholson sounds profit warning

Build rates to be slowed down as London and the south suffers from lack of buyers
5 days ago

Welsh ministers look to rebid £1.3bn M4 relief road

Cost-saving plan to split 23km Costain/Vinci motorway scheme into three contracts
5 days ago

Bouygues confirmed for £250m Cavendish labs

Cambridge University signs contract for 354,000 sq ft physics complex
5 days ago

Balfour Beatty renews £2.1bn Scape UK civils deal

Contractor reappointed as sole supplier for infrastructure across the UK
5 days ago

Muirfield boss banned after creaming cash from failed firm

Ex chairman gets nine-year director disqualification after siphoning off £880,000
5 days ago

Ex-Bouygues director joins Speller Metcalfe

Martyn Chaplin joins the Midlands builder after 15 years with Thomas Vale and Bouygues UK
5 days ago

Warden Construction wins £26m Sheffield student job

Work to start in February on 289-bed scheme in St Vincent’s Quarter
5 days ago

Contractor services