New Businesses Could Access Prom Loans

Some businesses which have opened on the prom since the (never ending) regeneration works began may be able to access support loans before the scheme closes.

Captain of the Starship, sorry Minister for Enterprise Dr Alex Allinson will bring the amended scheme to Tynwald next month, ahead of it closing in June.

Reflecting the disaster that has been the prom scheme and its impact on several businesses, the gov set up a scheme in January 2020 where businesses could apply for an interest free unsecured loan support of up to £50,000, provided they were financially affected by the scheme.

As the prom scheme nears completion, it was due to be finished in April 2021, the DfE and Treasury have agreed that it should close.

The motion’s explanatory notes said: ‘However, new businesses have commenced trading on the Promenade since the Refurbishment Scheme began. These businesses would have expected that the works would be completed sooner than they have been. The 2022 Scheme amends the date on which a business in the area must have been in operation and the trading situation of the businesses. This allows a small number of additional businesses to become potentially eligible for support before the Scheme closes.’

The 2022 Scheme also amends the wording of the scheme pertaining to the date by which loans under the Scheme must be repaid. The 2019 Scheme provides that the loan is repayable over 10 years. However given the ongoing works and the pandemic the DfE says it ‘has not been strictly enforcing repayment terms and conditions’. The amended wording will therefore provide flexibility for the it to deal with the terms for repayment in a reasonable manner. Loans will continue to be repayable at 0% interest rate.

The scheme will close to new businesses on June 1 and it is estimated that up to £250,000 of loans may be provided as a result of the amendments.