• Islands Coronavirus Disruption Guarantee Loan

  • The Islands Coronavirus Business Disruption Guarantee Loan Scheme provides financial support to existing local business customers across the Channel Islands and the Isle of Man who are experiencing a loss of revenue and cash-flow disruption as a result of the Covid-19 outbreak.

    The scheme is a government response to the impact of Covid-19, whereby a Government Guarantee is offered to support 80% of the borrowing within the scheme.

    The loan may be offered to existing business customers who have a viable business proposition, but unable to obtain finance on normal terms due to an absence of security, or where security may be difficult to take due to the impacts of Covid-19.

    It is important to note that the client remains 100% liable for the debt.


    Key Features

    • Variable rate loans available in Sterling (GBP)
    • Loans start at £5,000
    • Maximum loan available of £500,000
    • Terms available from 1 – 6 years
    • Capital repayment holiday available for the first 6 months of the loan
    • Arrangement fees of up to 1.5% will apply to your loan
    • Available to existing customers with turnover up to £10M
    • Available where the business does not have security available or cannot access security at this time due to COVID-19
    • We will agree with you the initial variable interest rate and margin that will apply to your loan at account opening
    • Loans have an underwritten government backed guarantee of 80% exposure and LBCM 20%
    • You are unable to consolidate any existing debt into this loan
    • Terms and Conditions apply and you will be sent a copy of these prior to account opening, which you should read carefully.


    • Subject to our eligibility criteria you could have a loan within days
    • No break fees payable if you choose to repay the loan early.


    • You are 100% liable for the loan.


    • Your maximum turnover should not exceed £10m, based on the most recent yearend accounts
    • You must operate within an eligible sector
    • The business is unable to meet a bank’s normal lending requirements for a fully commercial loan, but would be considered viable over the longer-term, notwithstanding any Covid-19 impacts over the short-to-medium term
    • The business has a genuine interruption underlying the request.
    • Check your government website to see if you trade in an eligible sector:



      Isle of Man

    Interest Rates

    The loan will be linked to an index like to the Bank of England Base Rate.

    Terms and Conditions

    If your application is successful we will provide you with the documentation required for completion.

    You will receive a copy of your Business Loan Agreement setting out the terms of your loan.

    How to apply

    To apply please contact your Relationship Manager to discuss your application or email the relevant email address and we will get back to you as soon as possible.

    Isle of Man: IOMARM'S@LloydsBankInternational.com


    Guernsey: CommercialGuernsey@lloydsbankinternational.com

    Excluded sectors

    Please click on the relevant government website below and check if you trade in the eligible sectors:



    Isle of Man


  • What is the minimum amount I can borrow?


    What is the maximum amount I can borrow?


    What currency will the loan be in?

    GBP Sterling

    What type of interest is paid on the loan?

    Interest is at a variable rate and linked to the Bank of England Base Rate

    What is the eligibility criteria to open an Islands Business Disruption Loan?

    You may be eligible if you are an existing business customer impacted by the current COVID-19 outbreak and a genuine cash flow disruption due to the outbreak

    Can the business consolidate its current lending for one the Islands Business Disruption Loan?

    No you are unable to consolidate existing loans to apply for the Islands Business Disruption Loan

    I am not a LBCM LBI business customer am I able to apply for a loan?

    At this time the scheme is only available to existing Lloyds Bank Corporate Markets Islands Commercial customers

    Do you offer capital repayment holidays for this loan?

    There is a 6 months capital repayment holiday available with the loa

    Do you offer interest free months for the loan?

    There are no interest free months available on the loan

    What happens if I cannot repay my loan?

    If you are unable to pay your loan we will explore our normal debt recovery process with you. If after exploring these options you are unable to repay your loan we would contact the government for the repayment of the guarantee

    How do I apply for an Islands Business Disruption Loan?

    To apply please contact your Relationship Manager to discuss your application or email the relevant email address and we will get back to you as soon as possible

    Isle of Man: