Jersey Finance has welcomed a series of measures introduced by the Government of Jersey to help provide much-needed support to Island businesses during this challenging period. These include:
- £50 million in a new Jersey Disruption Loan Guarantee Scheme, to provide Government guaranteed bank lending and overdrafts to businesses;
- A Special Situations Fund to support larger businesses;
- Consideration to be given to a small business emergency fund, for the self-employed and very small businesses;
- Deferral of Social Security contributions and GST payments;
- Deferrals or rent renegotiations;
- Flexibility from utility companies; and
- Upgrading of all users to 1 Gigabit broadband.
The Jersey Disruption Loan Guarantee Scheme is particularly significant from a finance industry perspective, and will be introduced to support new bank lending, including loans and overdrafts, to businesses, backed by a Government of Jersey guarantee arrangement.
The guarantee scheme, with an initial value of £50 million, will remove uncertainty for banks who may be reluctant to extend new credit to otherwise viable businesses during this economic uncertainty. The measure will require approval by the States Assembly as a matter of urgency.
Joe Moynihan, Chief Executive, Jersey Finance said:
“The Jersey banking sector has already put into action a range of forbearance measures to deal with the initial impact of the corona virus. In addition, banks are also working with government to coordinate support for people, families and business in Jersey. I would encourage all businesses or individuals who may be experiencing problems, or expect to do so, to contact their banks to discuss their options as soon as possible. To be clear, the banking sector is committed to doing all it can to support the Island of Jersey and the local community.”
For more information on the scheme and other new supportive measures visit the Government of Jersey website.