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£9m of further COVID support for businesses

Thu, 02 Dec 2021

The Economic Recovery Group (ERG) has announced new and extended measures to support local businesses in light of continuing pressures around COVID-19.

• A grant will be offered to all businesses that have suffered a 25% downturn in the qualifying period, in the catering, hospitality, retail (non-essential), and lifestyle sectors with commercial premises equivalent to four years’ business rates, which is intended to provide support for premises costs for the period of December 2021 to March 2022. Those businesses without commercial premises can claim a single grant payment of £4,000 to cover the same period.
• The Strategic Capacity Scheme (SCS) which supports tourist accommodation providers will be extended until March 2022.
• Support for Allied tourism and travel businesses (self-employed and sole traders) will also be extended for the period January to March 2022, in the form of a single grant payment of £3,000.
• The Coronavirus Recovery Scheme (CRS) will be extended until March 2022 for those allied tourism and travel businesses with staff other than the owners.
• The Coronavirus Business Adaptation Grant will be extended to March 2022 supporting a broad range of sectors with the ability to enhance their offering, for example by developing online services for customers or improving ventilation systems.
• An additional £3,000 one off grant will be available for retail (non-essential), catering, hospitality and lifestyle sector businesses in January 2022 that can demonstrate a 25% downturn in business for December 2021.
• The Domestic Event Fund has been extended until March 2022 and enhanced to include single venues within the hospitality sector.

These new measures add to the range of support available for local businesses and employees. Including:

• The Disruption Loan Guarantee Agreement which provides up to £60 million through five of the Island’s commercial banks, 80% of which is guaranteed by the Isle of Man Government.
• The Working Capital Loan Agreement which offers credit facilities of up to £10 million, 100% of which is guaranteed by the Isle of Man Government, which acts as a further safety net for those businesses who cannot access working capital via their banks or do not qualify for assistance via the Disruption Loan Guarantee Agreement. Businesses are encouraged to contact the Enterprise Support Division if they need advice on collating the information required for the loan applications. Financial assistance will be available to eligible businesses to assist with accountancy services up to £500. 
• Enhanced Incapacity-Related Social Security Benefits are available for people unable to work due to illness or because of isolation due to Coronavirus with access to Income Support for those who may not qualify, or need additional support.

Treasury Minister David Ashford MHK, said:‘We have been engaging with a number of business representatives throughout the pandemic and have been reviewing their feedback in line with the current pressures exacerbated by the latest COVID developments. The Economic Recovery Group met yesterday and have implemented a series of changes to current funding measures to ensure our businesses get the support they need to keep delivering services for the Isle of Man.

‘We know the next few months are going to be tough on certain sectors especially, and have made a commitment to continuing this support into spring next year and today’s announcements represent a further package of more than £9 million of direct support.’

 

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