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Working Capital Loan Agreement

The Coronavirus Business Working Capital Loan Agreement ('WCLA')has been introduced in response to the ongoing financial challenges facing businesses as a result of the coronavirus (COVID-19) pandemic, and supports up to £10million of new lending, providing a further safety net for those businesses who cannot access working capital via their banks or do not qualify for assistance via the Disruption Loan Guarantee Arrangement ('DLGA').

100% of the credit facilities provided will be underwritten by the Isle of Man Government. 

The WCLA has been extended for a further period, in recognition of the continued impact on Isle of Man businesses, and is currently open for applications via banks.

The Agreement is currently available through two Island based banks: 

The Agreement supports overdraft and term-lending loan facilities of up to £250,000 for a minimum term of three years and a maximum term of seven years.

The Agreement, which is for Isle of Man registered businesses with a turnover of up to £10million, enables eligible businesses to access seven year term loans with Isle of Man Government-backed guarantees.  

Features of the Agreement 

  • Loans of £5,000 to £250,000, for locally based businesses who would otherwise not qualify for bank support, will be extended by the lender with a 100% government guarantee in favour of the lender 
  • The loan is interest free in year one, then at an interest of 6% for the remainder of the borrowing term
  • There is a capital repayment holiday in the first 12 months during the drawdown period
  • Maximum term of loan is 7 years ( comprising of a 12 month draw down period against cash flow, followed by a 6 year capital and interest repayment period)
  • Existing debt are not covered by the Agreement (consolidation/term - out of existing overdrafts etc.) 
  • 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
  • For lending above £50,000, borrowers are required to pledge all available business assets when applying for support under these arrangements


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

Applicants must have been declined both by their Bank under business as usual lending terms and for assistance under the Disruption Loan Guarantee Arrangement.

The loan amount will be restricted to the highest of either 25% of the business’ annual turnover, or 5 times the previous year’s net profit.

The applicant must be 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.

Any business applying for a facility under the CBWCLA must self-certify that the business has been significantly impacted by COVID-19 to the extent that there has been a material loss in revenue – equating to more than 20% of annual turnover/revenue.

The applicant must have been declined a facility under the DLGA.

Excluded sectors include the following:

  • Financial and insurance activities as regulated by the FSA;
  • 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.

*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 credit facilities.

How to access the Agreement 

To find out more about the Isle of Man Working Capital Loan Guarantee Agreement, please contact one of the participating lenders as detailed above.