Important Note: Applications closed 31st May 2022
This scheme provided loan support to viable, sustainable and eligible retail and hospitality businesses (excluding visitor accommodation) on Douglas Promenade which have been financially affected by the Refurbishment Scheme.
Applications for this Scheme closed on 31st May 2022.
Financial Support Available
- An unsecured, interest free loan of up to £50,000, repayable over a 10-year period.
- The applicant must propose a repayment schedule of the loan that is to be agreed by an accountant* and the Department.
- The business must have been in operation in the support area on or before the 1st April 2021.
- The business must show financial affect as a result of the Refurbishment Scheme and this must be certified by an accountant* as a fair and accurate assessment.
- The business must be located in the designated zone. This is between the southern end of Loch Promenade and Strathallan Crescent.
- The business must state whether or not they are compliant with Tax, NI and VAT.
- The business must rely on public access for footfall and trade.
- The business must be trading as a going concern in accordance with generally accepted accounting principles or practice and this must be confirmed by an accountant*.
- Sole traders and businesses operated only by the owners of the business will be eligible to apply.
- No person involved in controlling the business is disqualified from holding appointment as a director or a company secretary either in or outside the Island at the time of application.
Eligible Sectors and Business Functions
- Retail; and
- Hospitality including restaurants (open to non-hotel residents).
Ineligible Sectors and Business Functions
- Residential property and developments;
- Visitor accommodation;
- Visitor accommodation operating a guest only restaurant; and
- Charities and not for profit organisations etc.
Other Key Information
- A business plan must be submitted alongside the application to lay out the future plans for the business and use of potential funds.
- The minimum value loan offered will normally be £5,000.
- The loan is for business purposes or to discharge liabilities incurred in the conduct of that business and not for personal purposes or to discharge liabilities unconnected with that business.
- Applicants (including groups with multiple connected businesses or self-employed persons with multiple businesses) may submit more than one application. The total value of loans paid per applicant, including groups of connected companies, will be capped at £50,000.
- The loan may be used by an applicant (includes but not limited to):
- Pay Government debts;
- Alleviate cash flow issues;
- Fund marketing initiatives;
- Improve internal or external refurbishment of the building, subject to planning approval and the owner's permission;
- Invest into the business and its assets; or
- Undertake business improvement projects.
*Role of the Accountant
Each application must be reviewed by an accountant who will comment upon (includes but not limited to):
- Whether the business is trading as a going concern;
- Whether the financial position declared in the business's application form and business plan is of true representation;
- Whether the business has experienced financial affect as a result of the Refurbishment Scheme;
- Whether the business has proposed a reasonable and achievable loan repayment schedule and that the business has ability to service the loan;
- Whether the business has declared compliancy with regards to Income Tax, National Insurance and VAT to a true effect;
- The impact that the loan will make upon the business.
As a result, the Department has introduced a small grant towards the cost of the accountancy services as part of the scheme that is to be requested by an applicant. The accountant's charging time and rate must be agreed in advance with the Department before they begin working for the applicant.
The grant is normally capped at £450 and will be paid directly to the accountant upon submission of their comments to the Department, regardless of whether the application proceeds to a loan being offered or paid. The grant is only available to each applicant once, regardless of how many loan applications the business submits.
Enterprise Support Team Contact Details
Telephone: 01624 687333
Address: Douglas Promenade Support Scheme (Loan), Department for Enterprise, 1st Floor, St George's Court, Upper Church Street, Douglas, IM1 1EX.