FEE-free overdrafts and loan repayment holidays are to be offered to small businesses affected by the Carillion collapse by two major banks.
Royal Bank of Scotland has put £75 million into its pot, while Lloyds has committed £50m for companies caught up in the supply chain.
The UK’s second largest construction company entered liquidation on Monday, causing concern over the future of the smaller enterprises it was engaged with and major job fears.
READ MORE: The Carillion story is proof our economic system is obsolete
The company had a headcount of around 20,000 across the UK at the time of collapse, with many others engaged through third parties.
Its services ranged from building to maintenance and the provision of school meals.
Yesterday Jo Harris, managing director of Lloyds Business Banking, said: “Small businesses don’t normally have the cash reserves that larger businesses do, so any interruption to their cash flow 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.”
Meanwhile, RBS said it would offer “flexible options to support impacted small business customers in Carillion’s supply chain, providing payment holidays and assistance with their overdraft to help manage any short-term cash flow challenges”. Meanwhile, 250 staff previously employed by Carillion will have their contracts taken on by Nationwide in the coming days.
They include maintenance workers and cleaners providing services in the building society’s branches.
And the Construction Industry Training Board has urged former Carillion apprentices to get in contact so it can help them continue their training.
Chief executive Sarah Beale said: “We understand it’s a very worrying time for the young people who were on the Carillion apprenticeship programme, but we can help them restart their training and get their careers back on track if they get in touch with us.
“Our industry needs the skills these young people are developing and we want to help them find new employers and get their qualifications.
“Our industry, which has consistently reported skill shortages and difficulties in attracting apprentices, now needs to step up and support these young people who have so much to offer. “
UK Business minister Greg Clark was set to chair the first meeting of a task force geared towards aiding affected small firms and workers yesterday.
Including representatives from trade unions, the construction trade and banks, it was welcomed by TUC general secretary Frances O’Grady, who said: “Time is of the essence in dealing with this crisis.
“We need urgent action to protect jobs, pay and pensions. This cannot be a talking shop.”
A spokesperson for the Business Department 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 task force will meet today and will comprise representatives from business, construction trade associations, the trade unions, lenders and government.”
The Scottish Government has set up a hotline for affected workers north of the Border, after Economy Secretary Keith Brown revealed its contingency planning on Carillion began last summer over fears for the company’s future.
It was part of the consortium hired to build the Aberdeen bypass, but Brown said Holyrood would not fill the financial “hole” created for the remaining partners by its liquidation.
Carillion was also engaged by Network Rail on key infrastructure projects, including the extension of platforms at Edinburgh Waverley, and for the maintenance of MoD sites.
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