Crown Dependencies Establish Important COVID-19 Loan Guarantee Schemes

The Governments of Guernsey, Isle of Man and Jersey have each agreed to provide loan guarantee schemes to enable further financial support for businesses in the Crown Dependencies in light of the coronavirus (COVID-19) pandemic.

A coordinated approach has been taken in agreeing the schemes between the Governments of the Crown Dependencies and, as such, the schemes will be broadly aligned, although each Government will guarantee loans only for its own local businesses. The schemes will be operated initially by a number of banks across Guernsey, Jersey and the Isle of Man, including Barclays, HSBC, Lloyds, RBSI/NatWest/Isle of Man Bank, Santander and Conister.

Guarantees will be provided to the participating banks of 80% of lending, providing in aggregate £140 million of new lending across the Crown Dependencies. The schemes are designed to provide increased access to liquidity for viable businesses that may suffer solvency issues as a result of the