Manx Financial Group secures government-backed lending appointments
Manx Financial Group PLC (LSE: MFX), the financial services group which includes Conister Bank Limited (“Conister”) and Conister Finance & Leasing Ltd (“CFL”), is pleased to announce significant government approved appointments in the Isle of Man and the UK.
In the Isle of Man, Conister have been working closely with the government to assist local businesses throughout the Covid-19 pandemic. 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. Subsequently, the Isle of Man government has launched a Working Capital Loan Agreement (“WCLA”) with an 100% indemnification of any loss. The WCLA will provide a further safety net for those businesses who cannot access working capital via their own bank or do not qualify for assistance via the DLGA. Conister is currently one of only two banks appointed to operate the WCLA facility and has set aside £15m to support both schemes. The schemes are open to new and existing Conister customers and provide Isle of Man SMEs with the chance to regain momentum following the downturn in trade as a result of Covid-19.
In the UK, CFL has been accredited by the state-owned British Business Bank (“BBB”) for the Bounce Bank Loan Scheme (“BBLS”) and the Coronavirus Business Interruption Loan Scheme (“CBILS”) to provide loans to support the SME market. CFL has 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 backed by the UK government.
Douglas Grant, the Group’s finance director, commented:
“I am extremely pleased that two Group companies, Conister and CFL, 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.”
