Coronavirus – Business Disruption Loan Guarantee

This scheme is now closed.

The Government has announced a series of business support measures to help preserve as many Islanders’ jobs as possible during the COVID-19 epidemic and maintain our key economic infrastructure. The aim of this support is to maintain cash flow so that people can remain in employment and businesses do not have to close permanently.

Initial Government support is available through the Payroll Co-funding scheme, but you may also need to borrow money to help your business through Covid-19 related difficulties.

To do this you should talk to your bank as they may be able to help in line with their usual commercial terms and/or use this Business Disruption Loan Guarantee Scheme to support you.

Key features of the scheme

Below are some of the key features of the Business Disruption Loan Guarantee Scheme. Please read these in conjunction with the specific terms of your lending bank to make sure you have an accurate understanding of all the terms that will be relevant to your business.

COVID-19 - BDGLS Features


Eligibility criteria
  • Your Business meets the viability test
  • Must be new lending (not refinancing or debt consolidation)
  • The business must be engaged in, or proposes, to engage in a Commercial Activity in Jersey and the borrowing will be used to support such Commercial Activity in Jersey
  • The business should hold Jersey Business Licence issued by the Population Office in respect of such Commercial Activity
  • The Borrower is not a participant in a COVID-19 business interruption loan scheme (by whatever name called) operated in the United Kingdom, or any other Crown Dependency
  • The business has not received state support of more than £100k
Application checklist

Please complete the Business Loan Guarantee Scheme checklist prior to contacting us or approaching your bank.

To aid you in navigating the application process we have created an online checklist.  We would strongly recommend that you complete this before approaching your bank to ensure your application is not unduly delayed.


Business Disruption Loan Guarantee Scheme checklist
Industry exemptions

There are no exemptions. Business Disruption Loan Scheme loans are available to all businesses.

How to apply

Prior to contacting us or approaching your bank please complete the Business Disruption Loan Guarantee Scheme checklist.

Business Disruption Loan Guarantee Scheme checklist

If you are interested in borrowing through Business Disruption Loan Guarantee Scheme to support your business, you should talk to your existing relationship manager at your bank.

The role of Jersey Business

Jersey Business does not administer this scheme nor does it lend or invest directly. Instead, we will use our knowledge and expertise to support you in gathering the information you require to complete your application, knowing what the Banks will expect to see when making their decision. Where the Bank does not grant the loan required, Jersey Business will support and guide you on the next steps and options available.

Further support and guidance

You can find details of other government measures to support public services, people and businesses through this disruption on the Government’s Advice for businesses on coronavirus (COVID-19) website

Government support for businesses

Guidance and support for your business during this period of uncertainty

We would reiterate that your first point of contact should through your Bank.

Jersey Business is here to provide free, independent, confidential guidance and support to businesses in Jersey.  Our team is here to guide you through this process, as well as providing assistance and access to tools that you may find useful.


Your questions answered on the Business Disruption Loan Guarantee Scheme

What is the scheme?

As businesses are required to close/ reduce services due to Covid-19 related measures, this will significantly impair their income and they are likely to suffer cash-flow constraints. The scheme is intended to support otherwise viable businesses whose bank cannot provide credit in line with their commercial appetite. The scheme will allow banks to extend financing to smaller businesses that are viable but unable to obtain finance under the lender’s normal requirements.

How does the scheme work?

The scheme will support overdraft and term-lending facilities. Government underwrites 80% of borrowing by the bank, up to a value of £50m. Government will have no relationship with the borrower. Where businesses have a relationship manager at their bank, they should first approach the relationship manager about borrowing as part of their normal commercial relationship. Those with no relationship manager and those with limited borrowing experience should contact Jersey Business, who can help build a lending proposition which will speed up assessment by their bank.

Who should I talk to about the scheme?

If you are interested in borrowing to help your business through Covid-19 related difficulties, you should talk to your bank. They may be able to help in line with their usual commercial terms and may be able to use the scheme to help you.

What is the maximum amount I can borrow?

Businesses can borrow between £5,000 to £500,000 under the scheme. This will be agreed between the business and the bank. Banks may able to lend more outside of the scheme, in accordance with their own commercial procedures.

When will I have to repay the loan?

The repayment process for repaying the loan will generally be aligned with the commercial terms of the bank.

What happens if I am unable to make repayments by the due dates?

If you borrow under the scheme but then find that you are struggling to make payments, in the first instance you should talk to the bank, who will be able to explore flexible ways to meet the payments. However, this is a loan, so it is important to remember before taking it out that it will need to be repaid.

I am a small business. Can I qualify for a loan?

Business Disruption Loan Scheme loans are available to all businesses.

I already have a number of creditors I need pay as soon as possible. How quickly can I access a Business Disruption Loan Scheme loan?

You should discuss this with your bank as they will facilitate the application process.  The scheme is only available to new working capital facilities.

What happens if my bank is not one of the five accredited lenders for the scheme?

Five accredited banks are working with the Government of Jersey to offer a structured Disruption Loan Guarantee Scheme which will give you access to government backed loans. They are Barclays, HSBC, Lloyds, NatWest and Santander.

If you do not have an existing relationship with one of these five banks, you should in the first instance contact your own bank as they may be able offer finance on normal commercial terms, without needing to make use of the scheme. If your bank is unable to offer support, please contact Jersey Business at [email protected] for further assistance.