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Isle of Man Disruption Loan Guarantee Agreement

The Isle of Man Government has announced the launch of the Isle of Man Disruption Loan Guarantee Agreement. 

The Agreement has been introduced in response to the financial challenges facing businesses as a result of the coronavirus (COVID-19) pandemic, and will see the Island’s commercial banks supporting up to £60 million of new lending, 80% of which will be underwritten by the Isle of Man Government.   

The Agreement will initially be implemented by: 

And will support overdraft and term-lending facilities of up to £500,000 as well as asset financing facilities. The Agreement, which is for Isle of Man registered businesses with a turnover of up to £10million, will also enable eligible businesses to access six year term loans with Isle of Man Government-backed guarantees.  

Fair Processing Notice – Loan Guarantee Arrangement

Features of the Agreement 

  • Loans of £5,000 to £500,000, for locally based businesses who would otherwise not qualify for bank support, will be extended by banks with a government guarantee in favour of the lender 
  • Existing debt will not be covered by the Agreement (consolidation/term - out of existing overdrafts etc.) 
  • No arrangement fee payable for the provision of the guarantee 
  • The borrower remains fully liable for the debt
  • Under the Agreement, personal guarantees of any form will not be taken for facilities below £250,000
  • Maximum term of loan is 6 years (For overdrafts and invoice finance facilities: up to three years and for term loans and asset finance facilities: up to six years)


For Isle of Man registered businesses with a turnover of up to £10m .

Excluded sectors include the following:

  • Financial and insurance activities as regulated by the FSA;
  • Legal activities, advocates, intellectual property management, accounting, actuarial, bookkeeping and auditing activities; tax consultancy, company secretary, management consultancy activities – who employ more than 30 people;
  • Business regulated by the IOM Gambling Supervision Commission;
  • Real estate (with the exception of estate agents, property management companies and construction firms)*;
  • Property development;
  • Public sector;
  • Utilities;
  • Agriculture and fisheries.

The Agreement will close on the 31 March 2021.

*Please note: Estate agents/property management companies and construction firms can access the Agreement only for the purposes of funding working capital requirements in terms of daily operational cash flow. The Agreement may not be used for the purposes of making repayments on other borrowings in line with the provisions of existing clause 2.2 (c) of the Guarantee Document

How to access the Agreement 

To find out more about the Isle of Man Disruption Loan Guarantee Agreement, please contact your bank directly. Contact details for the banks who are offering this are listed above.