A Further £10 Million of COVID-19 Financial Support Announced
On the 24th July the Isle of Man Government announced the forthcoming launch of the Coronavirus Business Working Capital Loan Agreement.
The Agreement has been created in response to the financial challenges facing businesses as a result of the coronavirus pandemic and will provide up to £10 million of working capital lending.
The Agreement forms part of a wider catalogue of financial support provided by the Isle of Man Government, which includes the Disruption Loan Guarantee Agreement (DLGA); launched in April following the initial outbreak of coronavirus. The Working Capital Loan Agreement provides a further safety net for those businesses who cannot access working capital via their banks or do not qualify for assistance via the DLGA.
The Agreement, initially supported by Conister Bank, will offer loans of up to £250,000 with Isle of Man Government-backed guarantees. Conister has confirmed they are open to receiving applications from non-customers.
Alfred Cannan, MHK, Treasury Minister, commented:
'Although we are rapidly moving towards the 'new normal', many businesses will still be struggling financially as a result of the pandemic. This funding will initially be available through Conister Bank and we very much welcome this additional financial support from the bank, who continue to show significant commitment to the Island's business community.
'A second lender on Island will also be supporting the Agreement and a further announcement on this, is expected in due course.'
Conister Bank's Managing Director, Douglas Grant, commented:
'Conister has consistently stood up for the financial well-being of local businesses during this crisis. Importantly, as the Island returns to some resemblance of normality, we recognise that each and every business will enter into a negative working capital cycle before they receive payment for their goods and services. As such we are delighted to be part of this Government-led solution.'
Full details of the scheme are being finalised, and a further announcement will be made when the Agreement's arrangements are in place.