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The Isle of Man Disruption Loan Guarantee Agreement

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The Isle of Man Disruption Loan Guarantee Agreement, a COVID-19 financial support initiative was launched last month.

The Agreement is supported by the Isle of Man Government and five of the Island’s commercial banks and was introduced in response to the financial challenges facing businesses as a result of the Coronavirus pandemic.

HSBC, Lloyds, Barclays, Conister Bank and RBSI (including Natwest and the Isle of Man Bank) will be supporting up to £60 million of new lending, 80% of which will be underwritten by the Isle of Man Government.

The Agreement will support overdraft and term-lending facilities of up to £500,000 as well as asset financing facilities. The Agreement, 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:

‘I am delighted that five commercial on-Island banks are offering this support package, which will enable our local businesses to continue to trade through these uncertain times.

‘The Agreement forms part of a wider package of support already announced by the banks on Island over the past several weeks and is a welcome boost for our Island businesses at this difficult time. The banks have already received over 100 applications in the last week.’

The Finance Agency led the complex development and delivery of the arrangements, working closely with the Treasury and five participating banks to swiftly launch the Agreement in response to the pandemic. This also required considerable cross jurisdictional work with counterparts in Jersey and Guernsey, ensuring bank operations across the three jurisdictions could be performed under a common regime. 

To find out more about the Agreement click here. Any questions or requests for further information should be directed to our Head of Banking and Fiduciaries, John Hunter

  

 

 

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