British Business Bank to offer £100m in government-backed finance to Carillion contractors

Small contractors left in debt by Carillion are eligible to apply for £100m in government-backed finance.
(Bill Nicholls/Wikimedia Commons)

The Government announced in early February that it would provide £100m in Government-backed loans to Carillion contractors, following the firms collapse. Support will be provided by the British Business Bank (BBB), which will enable high-street lenders to make loans to smaller businesses and individuals who are owed money by Carillion. The guarantee provided by the BBB enables high-street lenders to make loans to applicants who do not have assets to offer as collateral.

Of the move, 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.

While this measure offers important and necessary support to small contractors owed money by Carillion, the collapsed firm leaves an additional £800m in debt in its wake.