Government-backed Business Disruption Loan scheme

The Coronavirus Business Disruption Loan Scheme (DLGS) is designed to support existing HSBC Guernsey, Isle of Man and Jersey customers who have a borrowing need which we would consider viable were it not for the COVID-19 pandemic.

The Coronavirus Disruption Guarantee Loan Scheme is a government backed scheme which secures bank loans for viable businesses who may need to respond to cash flow pressures during the COVID-19 outbreak

This could be the right solution for you

If you are an existing HSBC Jersey, Guernsey & Isle of Man business customer:

  • looking for financial support through the short-term uncertainty due to COVID-19.
  • looking to increase your working capital funding.

The Governments of each island have their own separate Schemes which are not intended to replace normal credit assessment processes or to refinance existing facilities but to fund new working capital facilities for existing HSBC Jersey, Guernsey & Isle of Man business customers. As each of the Government Schemes are separate, you will only be eligible for the Island Scheme where your company is based.

Key features and benefits

  • A Government guarantee which secures 80% of bank loans to any viable & eligible business with a sound borrowing proposal, but which may lack adequate security.
  • Each government has a cap on the amount of support available under Scheme. The Scheme cap for each island is as follows: Jersey £50m; Guernsey £40m; Isle of Man £60m.
  • Small Business Loans, Flexible Business Loans & Overdrafts are available under the scheme.
  • No fee required for the Government guarantee.
  • No loan arrangement fees.
  • No early repayment charges, should you wish to repay early.
  • Available for sums of £5,000 to £500,000.
  • Subject to agreement, loans can be repaid over a period up to 6 years from the date of initial drawdown. Overdrafts are limited to 3 years.
  • Personal Guarantees will not be requested for loans under £250,000
  • Interest rate will depend on individual circumstances, up to a maximum rate of 4.5%. Small Business Loans offer Fixed Rate interest; Flexible Business Loans & Overdrafts offer
  • Variable Rate Interest with the pricing set over Bank of England Base Rate.

A Jersey, Guernsey or Isle of Man DGS loan may be available to you if you:

  • Are an existing HSBC Jersey, Guernsey or Isle of Man business customer.
  • Are incorporated in Jersey, Guernsey or the Isle of Man.
  • Have an annual group turnover of no more than £10m.
  • Operate in a sector that is eligible for the Jersey, Guernsey or Isle of Man DGS.*1
  • Have a sound borrowing proposal and are a viable applicant but may lack adequate security to meet our standard commercial lending criteria.
  • The purpose of the loan must be for commercial activity & must be appropriate for the nature of the scheme, for example:
    • Short term cash flow concerns;
    • Recommence trading;
    • Purchase of new equipment
  • You are responsible for ensuring that you have not received more than £100,000 of government support in the past two fiscal years, from any Crown Dependency.
  • You cannot have been party to the Coronavirus Business Interruption Loan Scheme (CBILS) in the United Kingdom.
  • You are liable for 100% of the loan and HSBC will always seek to recover the outstanding balance from you and the proceeds of any security provided by you or any security provided on your behalf. *2

Please note: customers should be aware of an increased fraud risk at this time. Fraudsters may attempt to gain your personal details through offering fraudulent DGS loans. HSBC will not be emailing or calling customers offering this scheme and you should contact us through your existing HSBC contact or via our normal channels below.

Next steps

To apply for DLGS, click here

 

You will be required to provide any of the following:

  • Copy of the last 2 years financial accounts
  • Cash flow forecast (covering the next 12 months), including impact of any other Government related COVID support on cash flow
  • Business plan, including 2020 budget and YTD management accounts, and management action plan / steps being taken to address COVID impact
  • Overview of existing borrowing facilities (across all lenders)
  • Security currently provided in relation to business borrowing facilities and potentially available (if any)
  • Estimated borrowing requirement and for what period

Click here (PDF, 733KB) for our lending checklist

Important notes

All loans are subject to status. Terms and conditions apply. The provision of the Scheme should not be construed as an endorsement or a warranty of HSBC Bank plc by the Governments of Jersey, Guernsey or Isle of Man.

 

*1 Excluded sectors are as per the below for each jurisdiction:
- In Jersey: Finance and professional services, property development, real estate, public sector, utilities & agriculture and fishing,
- In Guernsey: Finance and professional services, property development, real estate & agriculture and fishing,
- In the Isle of Man: Finance and professional services, property development, real estate, public sector, utilities & agriculture and fishing. Entities regulated by the Isle of Man Gambling Supervision Commission will also be excluded.

 

*2 If HSBC cannot recover all funds, the Government provides an 80% guarantee to HSBC.

 

You are leaving the HSBC Commercial Banking website.

Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.

You are leaving the HSBC Commercial Banking website.

Please be aware that the external site policies will differ from our website terms and conditions and privacy policy. The next site will open in a new browser window or tab.