Lloyds £1 billion pledge to support businesses over next two years

Lloyds Banking Group is pledging to make available at least £1 billion over the next two years, to eligible firms across the UK, as part of a drive to help businesses benefit from the opportunities created by the London 2012 Olympic and Paralympic Games.

The initiative is part of the Group's overall commitment to lend to UK firms, and will be open to any companies that win contracts with:

the Olympic Development Authority (ODA)
the London Organising Committee of the Olympic Games and Paralympic Games (LOCOG); as well as 
any suppliers to firms that already hold contracts

The total value of contracts connected to London 2012 is an estimated £6 billion, including £1 billion of direct contracts and an estimated £5 billion for suppliers to those companies that win business.

Help for companies across the UK, not yet involved

Importantly, the Group's commitment will also help companies that are yet to take advantage of the London 2012 Games. There are still a large number of small direct contracts available for firms across the UK as well as opportunities from the supply chain.

The Group will also be making the lending available to the thousands of businesses without official contracts, that stand to benefit from the ripple effect generated by the London 2012 Games. Examples of these businesses could include retailers in the area surrounding the Olympic site, or providers of services as diverse as catering, transport, or language translation, across the country.

Truett Tate, Group Executive Director, Wholesale, said: "British businesses could reap significant rewards from the Olympic and Paralympic Games.  We want to make sure that they are able to secure competitively priced finance.

"We're making available at least £1 billion in the run up to the Games to help businesses gain from the opportunity offered through London 2012. We want enterprising firms to know that, wherever in the UK they happen to be, there is still time to take a share of the Olympic pie. We also want to encourage firms that are not yet involved to act quickly."

Steps being taken to raise awareness

In order to ensure firms across the UK are aware of the available finance and the contract opportunities still open for the taking, the Group has put in place a series of initiatives.

In the run up to the London 2012 Games, the Group will support a nationwide programme of over 500 business seminars, for both SMEs and larger corporates.  The events will be held over the next two years, and will help businesses understand the steps they need to take to ensure they seize the opportunities available.

The Group has also published an online guide, called ‘Winning Business', to help companies of all sizes understand the business potential of the London 2012 Games and pitch successfully for the contracts still available.

All lending provided as part of this initiative will be on the same competitive and commercial terms as other business lending across the Group - and firms of all sizes, sectors will be eligible, across the UK.

Additionally, for small and medium sized firms (with a turnover of up to £15 million), our 2012 SME Charter principles apply. The lending will also help support businesses borrowing through Government initiatives such as the Enterprise Finance Guarantee Scheme. Businesses that are interested in exploring opportunities connected to London 2012, or that want to discuss possible financial support, should contact their relationship managers.

Lord Mandelson said: "The London 2012 Olympic and Paralympic Games is a unique opportunity for business. Over the next two and a half years we will be building towards an event in which firms of all shapes and sizes, and across all regions, can play a part.  But it is also clear that the economic benefits of the Games will live on far beyond 2012.

"Initiatives such as this from Lloyds Banking Group serve to encourage businesses to make the Games work for them. This is a good thing for business, for local communities, and for the UK as a whole."

Minister for the Olympics Tessa Jowell said: "The Olympic and Paralympic Games are already keeping order books busy up and down the country thanks to the billions of pounds worth of contracts already awarded. This initiative will build on that success, providing yet another boost to business."

Sebastian Coe, Chair, London Organising Committee of the Olympic Games and Paralympic Games (LOCOG), said: "London 2012 is not just about sporting talent and it is not just about London. Across the UK, there are thousands of incredible businesses that could stand to benefit from the huge economic boost that will come from the Games.

"The lending that Lloyds Banking Group has announced, will not only help those firms that are already making plans related to the Games; it will also help businesses that have not yet considered the opportunities in the run up to London 2012 and beyond."