A £2m emergency loan scheme is to be launched for struggling retail businesses affected by the Promenade works.

Enterprise Minister Laurence Skelly announced the move as he gave evidence to Tynwald’s environment and infrastructure policy review committee.

Mr Skelly said: ’We have to deal with this very important and urgent issue right now.’

A one-off £6,000 grant scheme was offered in August to businesses affected by the promenade scheme as an interim measure.

Mr Skelly told the committee he was announcing marketing support to promote the message that the promenade is open for business.

But he said Treasury had approved in principle a £2m emergency loan scheme.

Mr Skelly said businesses were in an ’extreme stress situation’ and the critical factor was cashflow.

He described the promenade as a ’shopfront’ and it was ’all well and good having a nice promenade but without the businesses it wouldn’t be any good’.

Mark Lewin, chief executive of the Department for Enterprise, explained the loans would likely be interest-free over 10 years.

Tim Cowsill, business development manager with Business Isle of Man, revealed there had been just two applications for grant support, of which one was ruled ineligible and the other had gone through and waiting for payment.

Mr Skelly said the DfE isn’t involved in regeneration infrastructure schemes - but it had been ’heavily involved’ since April’. Committee chairman Clare Barber MHK said that the committee had become increasingly concerned at the lack of capability across government to deliver a scheme of this magnitude.

Mrs Barber said: ’Until you have sat with business owners and heard them tell of the effect on their mental and physical health and on their families, the use of life savings and credit cards to bolster businesses, I don’t believe you can truly understand why resolution to this is so essential and so urgent.’