UK government is backing Jaguar Land Rover with a £1.5B loan guarantee

British car manufacturer Jaguar Land Rover has received a government loan of £1.5 billion following the cyberattack in early September. The loan is intended to protect the company’s suppliers from financial difficulties.

Secretary of State for Business and Trade Peter Kyle announced the financial backing on Sunday.

The loan serves to support Jaguar Land Rover’s supply chain, which employs over 120,000 workers. Some of the companies exclusively supply parts to the British car manufacturer, making them vulnerable to incidents like the recent cyberattack.

Secretary Kyle says that the loan will be paid back in five years. The loan is issued through the Export Development Guarantee (EDG) program, a financial program designed to support companies that export from the United Kingdom.

“This cyberattack was not only an assault on an iconic British brand, but on our world-leading automotive sector and the men and women whose livelihoods depend on it. This loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside, and throughout the UK,” he states in a press release.

After shutting down production for a couple of weeks, Jaguar Land Rover informed colleagues, suppliers, and retail partners last week that it would launch a “phased restart” of its operations. The company also said that it was “working to clear a backlog of payments” to suppliers as it increases its invoicing processing capacity.

In an updated statement, Jaguar Land Rover promises that some sections of its manufacturing process will resume in the coming days.

“We continue to work around the clock alongside cybersecurity specialists, the UK Government’s NCSC, and law enforcement to ensure our restart is done in a safe and secure manner. We would like to thank everyone connected with JLR for their continued patience, understanding, and support. We know there is much more to do, but the foundational work of our recovery is firmly underway, and we will continue to provide updates as we progress,” the statement says.

The cyberattack at Jaguar Land Rover is attributed to Scattered LAPSUS$ Hunters, a rebrand of three notorious hacking groups: Scattered Spider, LAPSUS$, and ShinyHunters.