Support for your business – update 3

States-back loan guarantee scheme

The States of Guernsey has finalised a loan guarantee scheme to enable further financial support for Bailiwick businesses.  Full details here.

The scheme has been finalised today (31.3.2020) and will be launched this week. Businesses that wish to utilise the scheme should talk to their banks directly. The scheme is operated by the clearing banks – Barclays, HSBC, Lloyds and RBSI/NatWest, however the Scheme will be open for other banks to join should they wish to.

The States will underwrite 80% of business borrowing without the need for security to be provided.

Principles of the scheme

  1. The Scheme only applies to trading businesses. Businesses regulated by the Guernsey Financial Services Commission and property investment and development businesses are excluded. This is subject to a maximum turnover of £10 million.
  2. The Scheme only applies in respect of new lending.
  3. States Guarantee will apply in respect of 80% of the total amount provided by the banks
  4. Loans and overdrafts will be for between £5,000 and £500,000.
  5. The Scheme will remain open until the 31st December 2020
  6. An individual’s principle primary residence cannot be provided as security to a bank in respect of the Scheme.
  7. States guarantee will remain valid for a total of 8 years.
  8. Banks may lend up to £250,000 without seeking any form of security from the borrower.

Revised Guidance for Business

The States have issued revised guidance, effective from 29 March 2020.  Please see here for the guidance and the six important steps you must read if you operate a business.

We also understand some clarity is required around the payroll scheme and grant, and we are seeking answers to some questions.  As soon as we know more we will update you.

Guidance on the Hardship Fund

The States of Guernsey have issued guidance on employees who will be eligible for the Hardship Fund that has been developed in response to the current crisis.

In summary:–

People of working age are asked to call 732516 or email [email protected] if they need financial support because:

  • they have been made redundant;
  • they are in employment or self-employment but have severely reduced household income, for example as a result of reduced working hours or rates of pay;
  • they are unable to work because they are sick, in self-isolation, their place of work is closed or they are caring for a dependent child (and they are unable to work from home).

To be able to be considered for support through the hardship fund those applying must not be eligible for unemployment benefit, sickness benefit or income support.

Further information regarding eligibility for the various financial support available to employees can be located here.

Stay safe.