The Strategic Investment Fund (The Fund) provides support through the provision of loans, investments and a fixed asset purchase facility which will help grow and sustain the economy, encourage the creation of new jobs and maintain current levels of employment. The Fund will only provide financial assistance to Companies which are deemed strategically important that wish to maintain their employment during the coronavirus pandemic, subject to meeting the eligibility criteria.
The Fund is also able provide financial assistance existing investments and loan clients (made under the Enterprise Development Scheme 2015 and 2018), who are not subject to the strategically important criteria.
The Scheme gives the Department the statutory authority to invest in businesses by way of loan support and investments and purchase of fixed assets from the business.
Statutory provision for the Fund is made under the Enterprise Development Scheme 2018 (as amended by the Enterprise Development (Amendment) Scheme 2020 and the Enterprise Development (Amendment) (No.2) Scheme 2020). The Scheme itself is made under the Financial Provisions and Currency Act 2011.
Purpose and Scope
Many normally stable businesses are currently being adversely affected by the Coronavirus (Covid-19) and require cash flow assistance to help them through the pandemic period. Without assistance the Department is concerned that some may fail or significantly reduce their workforce which would be detrimental to the Isle of Man economy.
The Department wishes as far as possible to protect against this situation by providing a fund the main purpose of which is to maintain the Isle of Man economy and protect jobs on the Isle of Man by providing loans, investment and a fixed asset purchase facility for those businesses that are deemed strategically important to the Isle of Man and can demonstrate that with support they can trade through the current crisis and return to growth in the future.
In summary, the Fund: -
- Is effective until 31st March 2021, the Department may remove it at any time.
- Provides loans, investments and a fixed asset purchase facility for businesses deemed strategically important to the Island; and
- Is internally managed within the Department, with external support procured as required.
The Fund offers support by way of investment (which may take the form of an equity stake either as ordinary or preference shares, or by way of quasi-equity or convertible instrument) (“investments”), by way of loan or a fixed asset purchase facility for those businesses deemed to be strategically important. Strategically important is defined as a Company with at least one of the following:
- More than 50 employees and more than 12 months old;
- Isle of Man staff payroll over £1.5m per annum;
- Local spend with IOM suppliers of products and services in excess of £1m per annum;
Any financial assistance provided will be for a minimum amount of £25,000 and a maximum amount of £1m in aggregate per applicant.
For eligibility requirements, please refer to the Guidelines.