(Alliance News) - Manx Financial Group PLC on Friday said its Conister Bank Ltd business has been approved to operate the Isle of Man government's working capital loan agreement facility.
In the Isle of Man, financial services firm Manx Financial said, Consiter Bank has been working with the government to assist local businesses during the Covid-19 pandemic. It joined four major clearing banks in April to offer the disruption loan guarantee agreement with an 80% government-backed indemnification of loss.
Since then, the Isle of Man government has launched a WCLA with 100% indemnification of loss. This is to provide a safety net for businesses unable to access working capital through their own bank or who do not qualify for assistance under the DLGA.
Consiter Bank is one of just two banks appointed to operate the WCLA facility, and has set aside GP15 million for both the DLGA and WCLA schemes, which are now open to customers.
In the UK, meanwhile, Manx Financial's Conister Finance & Leasing business has been accredited by the state-owned British Business Bank for the bounce back loan scheme and coronavirus business interruption loan scheme to provide loans for the small and medium enterprise market.
Conister Finance & Leasing has received a GBP10 million total lending allocation for the BBLS with 100% indemnification of loss and a GBP6 million CBILS allocation with 80% indemnification of loss, both guarantees having been backed by the UK government.
Manx Financial Finance Director Douglas Grant said: "I am extremely pleased that two group companies, Conister and [Conister Finance & Leasing], have been selected to provide government-backed funding to assist SMEs. 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."
Shares in Manx Financial were up 8.6% at 8.80 pence in London on Friday morning.
By Anna Farley; annafarley@alliancenews.com
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Manx Financial (MFX)