These Agreements were created in response to the financial challenges facing businesses as a result of the Coronavirus pandemic, to provide overdraft and term loans to businesses who required additional working capital support outside of that available through traditional bank terms.
The Treasury and Finance Isle of Man worked collaboratively with the Island’s banks to provide access to Government backed loans through the Disruption Loan Guarantee Agreement (DLGA) opening up to £60m of new lending, 80% underwritten by Government and the Working Capital Loan Agreement (WCLA) providing up to £10m of new lending, 100% underwritten by Government.
To date, under the Disruption Loan Guarantee Arrangements, £3.4mn has been approved by banks. This currently supports 72 businesses and 730 jobs. Under the Working Capital Loan Guarantee Arrangements, £1mn has been approved by banks supporting 11 businesses and 82 jobs.
The DLGA is currently provided through Conister Bank, Lloyds Bank, Barclays Bank, HSBC and RBS International (NatWest Isle of Man Bank).
The WCLA is provided through both Conister Bank and Santander International and 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.
Applications for credit facilities should be made through one of the participating banks and further details on eligibility are on the Covid-19 websites
Alfred Cannan, MHK, Treasury Minister, commented:
‘Through these schemes we have supported 83 businesses and over 800 jobs in addition to a wider package support available for businesses. The commitment of our local banks to supporting our local economy and helping businesses trade through these difficult times is vital and I am delighted that we have been able to collaborate in this manner to put these facilities in place.’