British Business Bank offers 100m support package to firms affected by Carillion
Carillion collapse: Small firms call for project bank accounts to protect supply chains Small businesses have urged the government to extend the use of project bank accounts for major public projects to protect firms against the risk of catastrophic market events like Carillion’s liquidation. __________________________________________________________________________________ Stephen Pegge, UK Finance’s managing director for commercial finance, said that it had become increasingly important to help underpin the cash flow of firms affected by Carillion’s liquidation on 15 January. He added: The enhancement of the EFG by the BBB will help those facing temporary cash flow issues to access the finance they need to support their businesses through this period. Welcoming further commitments from the BBB and UK Finance, business secretary Greg Clark said: 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. In the wake of Carillion’s collapse, Clark has been chairing regular meetings of a taskforce set up by the government to keep track of the impact the liquidation has had on small construction firms. I will continue to work closely with business organisations, trade unions and banks to actively support those affected by Carillion’s insolvency, Clark went on to say. 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.