18th October 2017
Development Bank of Wales Launches
The new Development Bank of Wales has launched with more than £400m available to support Welsh businesses.
The Welsh Government-backed bank, which replaces lender Finance Wales, has about £440m available to invest in Welsh business.
It is hoped that over the next five years the Development Bank of Wales will have an impact of more than £1bn on the Welsh economy. It is expected to support 1,400 businesses who in-turn could create and safeguard more than 20,000 jobs.
It has launched with a the new £100m Wales Flexible Investment Fund, offering up to £5m in a single round and repayment terms of up to ten years.
Through the development bank, the Welsh Government is also trebling the amount of micro finance available from £6m to more than £18m, with further funds also being developed.
Economy and infrastructure secretary Ken Skates said: “The bank will use Welsh Government funding to support investments that will help grow Wales’ economy both today and into the future and provide businesses with the support they need.
“As our businesses thrive and repay the loans, that money will be re-invested meaning that the capital doesn’t just help businesses succeed now, it funds the next generation of Welsh success stories too.”
Giles Thorley, chief executive of the Development Bank of Wales, added: “99 per cent of all businesses across Wales are micro to medium size. They account for 60 per cent of all private sector employment. As businesses face the uncertainty of Brexit, the need to provide stability and stimulate growth is more immediate than ever.
“For Welsh businesses the changes mean that there is more finance available to support them no matter what their stage of business. Micro, small and medium businesses are vital to the Welsh economy and we are proud to have worked with so many ambitious and dedicated entrepreneurs.”