Manx Financial Group (LON:MFX)  said its two group companies, Conister Bank and Conister Finance & Leasing have been selected to provide Government-backed funding to assist SMEs. 

In the Isle of Man, Conister Bank has been working closely with the Government to assist local businesses throughout the Covid-19 pandemic, the financial services group noted. 

Conister joined the four major clearing banks in April to offer the Disruption Loan Guarantee Agreement ("DLGA") with an 80% Government-backed indemnification of any loss.  

Subsequently, the Isle of Man Government has now launched a Working Capital Loan Agreement ("WCLA") with an 100% indemnification of any loss.  

The group said the WCLA will provide a further safety net for those businesses who cannot access working capital via their own bank or do not qualify for assistance via the DLGA.  

Conister Bank is currently one of only two banks appointed to operate the WCLA facility and has set aside £15 million to support both schemes.  

Shares in Manx Financial Group have climbed gradually over the past month and were trading 4.94% higher at 8.5p on Friday morning following the announcement. 

The schemes are open to new and existing Conister customers and provide Isle of Man SMEs with the chance to regain momentum following the downturn in trade as a result of Covid-19. 

Meanwhile, in the UK, Conister Finance & Leasing has been accredited by the state-owned British Business Bank for the Bounce Bank Loan Scheme ("BBLS") and the Coronavirus Business Interruption Loan Scheme ("CBILS") to provide loans to support the SME market. 

The company has now received a lending allocation totalling £10 million for BBLS with a 100% indemnification of any loss and a £6 million allocation for CBILS with an 80% indemnification of any loss: both guarantees backed by the UK Government, it noted. 

Commenting on the appointments, Douglas Grant, the Group's Finance Director, said: 

"I am extremely pleased that two Group companies, Conister and CFL, have been selected to provide Government-backed funding to assist SMEs. It is clear that lenders such as ourselves are recognised as a vital component in keeping the SME sector alive. 

 Even though this sector is in the front line of kick-starting the economy, the larger clearing banks still appear reluctant to offer the level of support required." 

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