Isle of Man Government announces the launch of the Isle of Man Disruption Loan Guarantee Scheme
The Scheme has been introduced in response to the financial challenges facing businesses as a result of the coronavirus (COVID-19) pandemic, and will see the Island’s commercial banks supporting up to £60 million of new lending, 80% of which will be underwritten by the Isle of Man Government.
Similar schemes have also been introduced across Jersey and Guernsey.
The scheme, which will initially be implemented by HSBC, Lloyds, Barclays, Isle of Man Bank and Conister Bank, will support overdraft and term-lending facilities as well as asset financing facilities. The scheme, which is for Isle of Man registered businesses with a turnover of up to £10million, will also enable eligible businesses to access six year term loans with Isle of Man Government-backed guarantees.
Laurence Skelly MHK, Minister for Enterprise, commented: “In the current situation we have a clear and pressing need to support local businesses that have been financially impacted by the coronavirus pandemic. The banking sector is best placed to provide assistance, in situations which may be at the margins of current lending decisions.
“We very much welcome this support from our local banks, who are continually working on supporting their customers and the local community during this unprecedented period.”
To find out more about the Isle of Man Disruption Loan Guarantee Scheme, please contact your Bank directly to discuss.
To find out more about the financial support schemes for businesses and individuals affected by Coronavirus, please visit the Financial Support for Businesses - Coronavirus (COVID-19) page.
Eligibility (Commercial Banks)
- Existing debt will not be covered by the scheme (consolidation/term - out of existing overdrafts etc.);
- No arrangement fee payable for the provision of the guarantee;
- For Isle of Man registered businesses with a turnover of up to £10m;
- Loans of £5,000 to £500,000, for locally based business who would otherwise not qualify for bank support, will be extended by banks with a government guarantee in favour of the lender;
- Maximum term of loan 10 years.
If you need to speak to us, please do not hesitate to contact Craig Mitchell or James Sayle on 629369 and they will be more than happy to help you.