Lloyds Bank creates £50m fund to support small businesses after Carillion collapse
Now open for applications, the fund is designed to support the working capital needs of Carillion’s small business suppliers
Lloyds Bank has created a new £50m fund to support its small business customers who are affected by the high-profile collapse of construction company Carillion.
Now open for applications, the fund is designed to support the working capital needs of Carillion’s small business suppliers, potentially allowing businesses to enter an overdraft without paying any fees.
For those most severely impacted by Carillion's collapse, the bank will also offer capital repayment holidays on loans for an initial six-month period.
Llyods customers will also be able to strengthen their cashflow by extending or drawing new invoice discounting or factoring products, minus any arrangement fees.
Not the only bank to lend a helping hand to its entrepreneurial customers, RBS is offering £75m worth of assistance – with HSBC launching a £100m fund.
Another sign of its support for the small business community, just last week, Lloyds Bank Commercial Banking was named Startups.co.uk’s second headline sponsor for Young Guns.
The bank will now sponsor the Golden Gun award, which recognises the exceptional achievement of one Young Gun alumni business from any of the last cohorts.
Joining chartered accountants and tax advisers haysmacintyre as a sponsor, Lloyds Bank will host the first Young Guns event of the year this February; a winter networking event for Young Guns alumni.
Gareth Oakley, managing director for small business banking at Lloyds Bank Commercial Banking, said:
“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.
“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 of business banking at Lloyds, added:
“Small businesses don’t normally have the cash reserves that larger businesses do, so any interruption to their cashflow 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.”
Young Guns 2018 will be opening for entries on Tuesday 1 May and closing at midnight on Friday 15 June. Click here for more information.