Islands Coronavirus Disruption Guarantee Loan

The Islands Coronavirus Business Disruption Guarantee Loan Scheme provides financial support to existing local business customers across the Channel Islands and the Isle of Man who are experiencing a loss of revenue and cash-flow disruption as a result of the Covid-19 outbreak.

The scheme is a government response to the impact of Covid-19, whereby a Government Guarantee is offered to support 80% of the borrowing within the scheme.

The loan may be offered to existing business customers who have a viable business proposition, but unable to obtain finance on normal terms due to an absence of security, or where security may be difficult to take due to the impacts of Covid-19.

It is important to note that the client remains 100% liable for the debt.


Key features

  • Variable rate loans available in Sterling (GBP)
  • Loans start at £5,000
  • Maximum loan available of £500,000
  • Terms available from 1 – 6 years
  • Capital repayment holiday available for the first 6 months of the loan
  • Arrangement fees of up to 1.5% will apply to your loan
  • Available to existing customers with turnover up to £10M
  • Available where the business does not have security available or cannot access security at this time due to COVID-19
  • We will agree with you the initial variable interest rate and margin that will apply to your loan at account opening
  • Loans have an underwritten government backed guarantee of 80% exposure and LBCM 20%
  • You are unable to consolidate any existing debt into this loan
  • Terms and Conditions apply and you will be sent a copy of these prior to account opening, which you should read carefully.


  • Subject to our eligibility criteria you could have a loan within days
  • No break fees payable if you choose to repay the loan early.


  • You are 100% liable for the loan.


  • Your maximum turnover should not exceed £10m, based on the most recent yearend accounts
  • You must operate within an eligible sector
  • The business is unable to meet a bank’s normal lending requirements for a fully commercial loan, but would be considered viable over the longer-term, notwithstanding any Covid-19 impacts over the short-to-medium term
  • The business has a genuine interruption underlying the request.
  • Check your government website to see if you trade in an eligible sector:



    Isle of Man

Interest rates

The loan will be linked to an index like to the Bank of England Base Rate.

Terms and conditions

If your application is successful we will provide you with the documentation required for completion.

You will receive a copy of your Business Loan Agreement setting out the terms of your loan.

How to apply

To apply please contact your Relationship Manager to discuss your application or email the relevant email address and we will get back to you as soon as possible.

Isle of Man: IOMARM'


Excluded sectors

Please click on the relevant government website below and check if you trade in the eligible sectors:



Isle of Man

Frequently asked questions