What Financial Assistance is Available Through the Isle of Man Enterprise Development Scheme?
Entrepreneur Government Funding
The Isle of Man has long been known as the home of entrepreneurs and innovators. This has been achieved over the years by playing to its strengths; strong communication with the private sector, supporting new ideas and ways of thinking, changing legislation quickly, and because it has wanted to lead not follow.
E-business has found a home in the Isle of Man with many companies becoming significant on-island employers.
The Isle of Man Government has launched an innovative Enterprise Development Scheme (EDS). The EDS is designed to allow the Isle of Man Government to provide new companies with a mix of loans and equity. The EDS involvement with the companies gives a large amount of support to new businesses and provides not just funding, but ongoing guidance.
The ideal EDS targeted business would be likely to be exporting their services from the Isle of Man and are, for example, E-business, Fintech, Media, Manufacturing, and, Bio Medical related. Eligible businesses include existing on-island businesses, early projects in their commercialisation phase, or simply businesses relocating to the Isle of Man to grow. Proposals that would be excluded from the EDS programme are companies that are exclusively trading on the island and have no exports.
The investment mix (debt/equity) is be based on a number of factors, not just the likelihood of complete success (profitable business and a financial return for the IOM Government) but also the employment opportunities for the island, the connectivity to other related industries on the island, the technology, and strategic economic nature of the investment (new sectors). Assessment and management of the investment is made by an independent manager, and an application can be supported by Dixcart.
How to Apply
All applications require an online enquiry form submission and an Isle of Man relevant business plan to be submitted to the Department of Economic Development. Dixcart can assist with this submission and can provide on-going support to a new company to the island, including:
- Accounting
- Company formation
- International advice and support
- On-going management and support
- Premises
- Recruitment
- Tax, VAT, and payroll support
The EDS funding comes in a range of forms as mentioned above either as a loan or equity investment. In addition, the Isle of Man also has a very generous grant assistance programme and Dixcart can provide further information on request.
The Three Main EDS Offerings Are:
Accelerator Scheme Loan
- Locally based business
- Ideally +5 employees
- Up to £100,000 loan on commercial terms
- Repayment term of between 1 to 5 years
- Purpose: loan to support capital, plant, equipment, premises and other tangible assets.
Accelerator Scheme Equity
- Locally based businesses and businesses relocating to the IOM
- Trading in export driven economic sectors
- Minimum of +5 employees
- Up to £250,000 equity investment as a minority shareholder
- Investment exit strategy anticipated to be within 3 to 5 years
Relocator Scheme
- New businesses setting up in the IOM
- Businesses relocating full or portions of existing businesses to the IOM
- Up to £1,000,000 as a minority shareholder
- Investment exit strategy anticipated to be within 3 to 5 years
- Minimum of 20+ employees
Additional Information
If you would like further information regarding the advantages offered by the Isle of Man, please speak to David Walsh at the Dixcart office in the Isle of Man: advice.iom@dixcart.com or to your usual Dixcart contact.
Dixcart Management (IOM) Limited is Licensed by the Isle of Man Financial Services Authority.
