Manx Financial Group announces government-backed lending appointments
Financial services company Manx Financial Group announced what it described as “significant” government-approved appointments in the Isle of Man and the UK on Friday.
The AIM-traded firm said that in the Isle of Man, its Conister subsidiary had been working closely with the government to assist local businesses throughout the Covid-19 pandemic.
It said that in April, Conister joined the four major clearing banks to offer the Disruption Loan Guarantee Agreement (DLGA) with an 80% government-backed indemnification of any loss.
Subsequent to that, the Isle of Man government launched a Working Capital Loan Agreement (WCLA) with an 100% indemnification of any loss.
The company said the WCLA would provide a further safety net for those businesses who could access working capital via their own bank, or did not qualify for assistance via the DLGA.
It said Conister is currently one of only two banks appointed to operate the WCLA facility, and had set aside £15m to support both schemes.
The schemes were open to new and existing Conister customers, and provided Isle of Man small-to-medium enterprises with the chance to regain momentum following the downturn in trade as a result of Covid-19.
In the UK, Conister Finance & Leasing (CFL) had been accredited by the state-owned British Business Bank for the Bounce Bank Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS), to provide loans to support the small-to-medium enterprise market.
CFL had received a lending allocation totalling £10m for BBLS, with a 100% indemnification of any loss, and a £6m allocation for CBILS, with an 80% indemnification of any loss.
Both guarantees were backed by the UK Government.
“I am extremely pleased that two group companies, Conister and CFL, have been selected to provide government-backed funding to assist SMEs,” said group finance director Douglas Grant.
“It is clear that lenders such as ourselves are recognised as a vital component in keeping the SME sector alive.
“Even though this sector is in the front line of kick-starting the economy, the larger clearing banks still appear reluctant to offer the level of support required.”
At 1345 BST, shares in Manx Financial Group were down 1.23% at 8p.