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| Lloyds creates fund for firms hit by Carillion collapse | Lloyds creates fund for firms hit by Carillion collapse |
| (35 minutes later) | |
| Lloyds Bank has said it will provide £50m to support its small business customers who are struggling after the failure of Carillion. | Lloyds Bank has said it will provide £50m to support its small business customers who are struggling after the failure of Carillion. |
| Lloyds was among the banks that stopped backing Carillion after the government refused to insure its debts. | Lloyds was among the banks that stopped backing Carillion after the government refused to insure its debts. |
| The government has asked banks for assurances that they would help firms affected by Carillion's collapse. | The government has asked banks for assurances that they would help firms affected by Carillion's collapse. |
| Meanwhile, Nationwide building society has said it will take in-house jobs which were performed by Carillion. | Meanwhile, Nationwide building society has said it will take in-house jobs which were performed by Carillion. |
| It said it wanted to provide "reassurances" at an "unsettling" time. | It said it wanted to provide "reassurances" at an "unsettling" time. |
| On Wednesday, Business Secretary Greg Clark met representatives of some of the banks to seek assurances that they would support small businesses hit by Carillion's liquidation. | On Wednesday, Business Secretary Greg Clark met representatives of some of the banks to seek assurances that they would support small businesses hit by Carillion's liquidation. |
| Afterwards, he said UK lenders were ready to give "tailored support" and flexibility when it came to repayments. | Afterwards, he said UK lenders were ready to give "tailored support" and flexibility when it came to repayments. |
| How do companies win government contracts? | |
| Carillion collapse raises job fears | Carillion collapse raises job fears |
| Carillion collapse: What next? | Carillion collapse: What next? |
| Lloyds said its fund, which is now available, was for small businesses within Carillion's supply chain that "may now be experiencing financial difficulty". | Lloyds said its fund, which is now available, was for small businesses within Carillion's supply chain that "may now be experiencing financial difficulty". |
| For the "most severely impacted" customers, that could mean capital repayment holidays on loans for six months to start with, to help with cash flow problems. | For the "most severely impacted" customers, that could mean capital repayment holidays on loans for six months to start with, to help with cash flow problems. |
| Jo Harris, Lloyds managing director of business banking, said: "Small businesses don't normally have the cash reserves that larger businesses do, so any interruption to their cashflow can have a significant impact on their ability to survive. | Jo Harris, Lloyds managing director of business banking, said: "Small businesses don't normally have the cash reserves that larger businesses do, so any interruption to their cashflow 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." | "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." |
| Lloyds was one of the banks to withdraw funding from Carillion, but is now stepping in to support firms affected by that decision. The BBC asked Lloyds whether there was a contradiction in that. | Lloyds was one of the banks to withdraw funding from Carillion, but is now stepping in to support firms affected by that decision. The BBC asked Lloyds whether there was a contradiction in that. |
| The banks withdrew funding from Carillion because of "viability", said a spokesperson. "There are reasons the Carillion situation happened." | The banks withdrew funding from Carillion because of "viability", said a spokesperson. "There are reasons the Carillion situation happened." |
| Lloyds had set up the fund for affected companies to ensure the impact of the collapse was "minimal", he added. | Lloyds had set up the fund for affected companies to ensure the impact of the collapse was "minimal", he added. |
| 'Provide clarity' | 'Provide clarity' |
| From next Monday, 250 staff, mainly cleaners and maintenance workers, who were on the Carillion payroll will be be employed directly by Nationwide. | From next Monday, 250 staff, mainly cleaners and maintenance workers, who were on the Carillion payroll will be be employed directly by Nationwide. |
| The lender will also take over contracts arranged by Carillion, which provide employment for another 1,500 workers. | The lender will also take over contracts arranged by Carillion, which provide employment for another 1,500 workers. |
| Staff previously employed by Carillion carry out cleaning, maintenance and administrative functions for Nationwide, including in its 700 branches. | Staff previously employed by Carillion carry out cleaning, maintenance and administrative functions for Nationwide, including in its 700 branches. |
| The building society said the move to take the jobs in-house would "provide clarity for those affected and ensure that services are maintained". | The building society said the move to take the jobs in-house would "provide clarity for those affected and ensure that services are maintained". |
| Carillion also sub-contracted some of its cleaning and maintenance work for Nationwide to a number of other companies. | Carillion also sub-contracted some of its cleaning and maintenance work for Nationwide to a number of other companies. |
| However, Nationwide said it would "now look to deal directly with third-party suppliers that currently support the Carillion contract". | However, Nationwide said it would "now look to deal directly with third-party suppliers that currently support the Carillion contract". |
| A spokeswoman for the company said it was "too early to say" whether Nationwide would look to outsource the jobs again in the future. | A spokeswoman for the company said it was "too early to say" whether Nationwide would look to outsource the jobs again in the future. |
| Carillion went into liquidation earlier this week, threatening thousands of jobs, about 20,000 of them in the UK. | Carillion went into liquidation earlier this week, threatening thousands of jobs, about 20,000 of them in the UK. |
| It described itself as an "integrated support services business" and held about 450 governmental contracts, spanning the education, justice, defence and transport ministries. | It described itself as an "integrated support services business" and held about 450 governmental contracts, spanning the education, justice, defence and transport ministries. |
| Its failure means the government will have to provide funding to maintain the public services run by Carillion. | Its failure means the government will have to provide funding to maintain the public services run by Carillion. |