States to launch its Covid-19 loan guarantee scheme soon
THE States of Guernsey’s loan guarantee scheme will launch later this week to provide much-needed financial support to businesses impacted by the Covid-19 pandemic.
Scheme details were finalised yesterday, only 10 days after a policy letter submitted by the Policy & Resources Committee was approved.
Under the scheme, the States will provide underwriting guarantees to participating banks of up to 80% of lending up to a maximum of £40m., although the scheme will not provide underwriting support for any lending already in place.
Lyndon Trott, vice president of the Policy & Resources Committee, said the banks had been keen to take part and thanked them and States officers for the scheme’s rapid coming to fruition.
‘The banks and States officers have been working around the clock to make this happen – this is three months’ work that has been completed in two weeks.
‘I am hugely grateful for the banks’ approach on this matter, further demonstration that they also realise that we are all in this together.
‘This is an important part of the framework of support measures for business that are being put in place.’
Deputy Trott encouraged businesses to look closely at the scheme to see if it could be of help.
The scheme will be operated by clearing banks Barclays, HSBC, Lloyds and RBSI/NatWest, although other banks will be able to join if they wish to do so.
The scheme is also being established in partnership with the Jersey government and the Isle of Man.
Toni Mancini, chairman of the Guernsey International Business Association, said he was pleased the States’ measures were helping a variety of industries and sectors.
‘The Guernsey International Business Association welcomes the States of Guernsey’s loan guarantee scheme alongside the other measures recently announced to support businesses during this challenging time,’ he said.
‘The recent days and weeks have shown the States of Guernsey’s strong leadership on public health and it is positive to see this extended to the wellbeing of our economy.
‘Maintaining the economic health of our island is critical to the short and long-term wellbeing of our whole community and we will continue to work closely with the States of Guernsey during this time.’
John Clacy, chairman of the Guernsey Institute of Directors, said the island must collaborate to get through the crisis.
‘Collaboration has always been a strength of our island; it is clear that the whole island is working together and the loan guarantee scheme, along with the payroll co-sharing scheme and other measures, will be welcomed by our members and the wider business community.
‘We’d urge business leaders to explore all the support options presented by the States of Guernsey.’
