9th January 2013
Expert Advice: Welsh Government funding support for businesses in Wales
By Mike Fenwick, Director of Grants, Corporate Finance, Broomfield & Alexander
In the current economic climate raising finance in particular for SME’s and early stage businesses, continues to be challenging.
In recognition of this the Welsh Government has recently announced the establishment of 3 new funds aimed at supporting SME’s, micro businesses and businesses operating in the Life Sciences sector.
Wales SME Investment Fund
The new £40 million Wales SME Investment Fund is a 4 year fund managed by Finance Wales that provides debt, mezzanine and equity finance to SME’s throughout Wales.
The fund consists of £20m from the Welsh Government and a further £20 million from the private sector. The new fund is able to provide support to a wider range of SME’s than were previously eligible for support under the £150 million Finance Wales JEREMIE fund.
The fund is currently open for applications.
Wales Micro Loan Fund
A new £6 million loan fund to support the growth of micro-businesses in Wales has recently been announced by the Welsh Government in March 2012.
The fund has been created in direct response to a report by the Micro-Business Task and Finish Group which emphasised that access to finance is a key barrier to growth for micro businesses.
The new fund will provide loans of between £1,000 and £20,000 to support micro businesses employing 10 people or less across the whole of Wales across all sectors. It is anticipated that the fund will provide support to a minimum of 300 businesses.
It is likely that the fund will be managed by Finance Wales and is due to be open for applications later this year.
Life Sciences Wales Investment Fund
The Life Sciences Wales Investment Fund will be a dedicated equity fund worth up to £100 million which will available to invest into life sciences businesses located throughout Wales.
The Welsh Government is putting £25 million into the fund immediately, to enable the fund to make its first investments into businesses later this year once the fund managers have been appointed.
It is anticipated that the fund will attract match funding from the private sector and help to stimulate investment in the Life Sciences sector in Wales.
Further information
If you require any further information or would like to discuss whether or not you may be able to access finance from any of the above funds please do not hesitate to contact Mike Fenwick on mike.fenwick@broomfield.co.uk
www.broomfield.co.uk/life-sciences