Contractors who have been adversely affected by the collapse of construction giant Carillion earlier this year will be able to apply for Government-backed loans to help plug gaps in their finances, it has been revealed.
The construction giant was placed into compulsory liquidation towards the end of January amid frightening debt levels of around £1.5 billion.
Under proposals backed by the Government, the British Business Bank will support up to £100 million of lending to contractors and small businesses affected by the collapse, while UK Finance will offer an additional multi-million pound package for small and medium-sized enterprises (SMEs) and extra help for anyone who is concerned about their mortgage or credit card payments, it has said.
Reports suggest that industry and Government will continue to work together to ensure contractors, workers and businesses alike are all supported following Carillion’s liquidation.
Recent figures suggest that as many as 30,000 contractors and businesses will be affected by late payments and cancelled contracts as a result of the collapse – while hundreds of workers will be made redundant.
The British Business Bank’s guaranteed lending comes in addition to separate funds created by Lloyds Banking Group, RBS and HSBC in recent weeks in order to extend further support to those affected by the collapse.