£100m funding package to support SMEs affected by Carillion’s collapse

The British Business Bank has up to £100m of lending to support SMEs affected by Carillion’s collapse.

The fund, announced over the weekend, is in addition to the more than £200m already announced by Lloyds Banking Group, HSBC and RBS.

The latest money will be made available via all the major high street lenders, and is targeted at small businesses that may not have the security otherwise needed for conventional bank lending.

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.”

The support follows the announcement on Friday by the Official Receiver that more than 900 former Carillion employees have had their jobs safeguarded.

In a statement, the OR said: “As part of the ongoing liquidation of the Carillion group I am pleased we have been able to safeguard the jobs of 919 employees today. Most staff are transferring on existing or similar terms and I will continue to facilitate this wherever possible as we work to find new providers for Carillion’s other contracts.”

However, 377 staff employed by the former Wolverhampton-based group have not fared so well and have been made redundant.

“Despite best efforts it has not been possible to secure the jobs of 377 staff, who will be made redundant. Those affected will be entitled to make a claim for statutory redundancy payments,” said the OR.

“I recognise that this will be a worrying time for all those affected, their families and local communities. I would like to thank all staff for their professionalism throughout the liquidation.

“I am expecting many employees working on other Carillion contracts to transfer in the coming weeks and we are continuing to keep the workforce updated as these are arrangements are finalised.”

It has not been made clear on which contracts the workers are employed.

Jobcentre Plus’ Rapid Response Service has been placed on alert to support the workers made redundant and to help them with their search for new jobs.