Business Start-Up Scheme

The Business Start-Up Scheme supports new start-ups or businesses trading for less than 18 months, with an actual or predicted turnover between £25,500 and £100,000 within the first 12 months of trading.

Support is also potentially available to new businesses with a turnover exceeding £100,000 which employ staff other than the owners.

The aim of the Scheme is to create viable, sustainable businesses that contribute to the success and diversity of the Island’s economy.

Benefits

• Funding of up to £6,000 payable as a re-imbursement grant, living allowance or combination of both;
• Enhanced funding of up to £15,000 funding for key sectors including exporting businesses and childcare providers;
• Further assistance of up to £10,000 to support job creation;
• Flexible, free of charge training, with morning, weekend or twilight schedules to suit you, covering all aspects of running a business;
• Access to an experienced business adviser to assist in developing an effective and comprehensive business plan, fully funded by the Department and ongoing mentoring for 18 months, fully funded by the Department

Features

Training

• The Scheme includes 16 hours of free extensive business training with morning, weekend and twilight schedules to suit you.

Action Plan Meetings

• Applicants will be allocated a business adviser for up to 3, one to one ‘Action Plan’ meetings to assist with developing various parts of their business plan and associated documents.
• The completed documents will be submitted to the Department, along with the adviser’s report and recommendation, for consideration for financial assistance and/or mentoring support. 

Financial Assistance

• The scheme offers financial assistance of up to £6,000.
• An enhanced rate of up to £15,000 for exporting businesses, childcare providers and businesses operating in Government defined key sectors is also available.
• This can be in the form of a 50% grant or a living allowance of up to £100 per week for a maximum of 26 weeks. Alternatively, applicants can opt for a combination of both, up to a total value of £6,000.
• Further assistance of up to £10,000 is also available to support job creation under the Scheme’s Employee Incentive.

Please note: Financial assistance of either a grant or living allowance is discretionary. All applications are treated on a case by case basis. 

Business Mentoring

• Successful applicants, will be partnered with the same business adviser for a further 18 months to undertake 6 quarterly meetings to support the business.

Eligibility

To be considered for financial support, the applicant/business must: -

• Be resident on the Isle of Man for income tax purposes;
• Be an Isle of Man worker or hold a valid work permit for the intended business activity;
• Be over 16 years old;
• Be in control of the business (50% ownership or more);
• Be trading for less than 18 months or not yet started trading;
• Have a separate business bank account (with either a challenger (digital) or traditional bank);
• Have an actual or forecasted turnover of between £25,500 - £100,000 per annum in the first 12 months of trading. If your turnover is likely to be in excess of £100,000 please contact the Department on 687333 to discuss. Applications from businesses with an actual or expected turnover in excess of this may be considered for financial support, if additional employment (other than the business owners) is generated; and
• In respect of limited companies, applicants must pay themselves a reasonable salary from the business, rather than a dividend as soon as possible.

Important notes:

Provision of financial assistance is discretionary and the decision to provide assistance in any particular case will be based on the merits of the case including the turnover, profitability, viability and scalability of the business, the exchequer benefit generated and the personal survival plan of the business owner. 

There is no guarantee that the full £6,000 (or £15,000 for exporting businesses, childcare providers and government defined key sector businesses) will be granted to the applicant.