Today sees the official opening of The Development Bank of Wales, which has been based in Wrexham, and expects to have a billion pound impact on Wales over five years.
Created by the Welsh Government, the new Development Bank should make it easier for businesses to get the capital they need to start-up, strengthen and grow.
In total, the Development Bank of Wales has around £440m available to invest in Welsh business. The Wales Flexible Investment Fund will invest more and over longer periods than existing funds, offering up to £5m in a single round and repayment terms of up to 10 years. Through the Development Bank, the Welsh Government is also trebling the amount of micro finance available from £6m to over £18m, with further funds also being developed.
The overall impact is hoped to support 1,400 businesses with those businesses creating and safeguarding more than 20,000 jobs.
Economy and Infrastructure Secretary, and local AM, Ken Skates said: “I am delighted we have been able to quickly progress Welsh Government’ plans to establish The Development Bank of Wales. 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 said: “99% of all businesses across Wales are micro to medium size. They account for 60% 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. The message to Welsh businesses is simple: get in touch. We’re here to help your business succeed.”
Offering loans and equity investments which can be paid back over periods of up to ten years, the Development Bank will offer a wide range of investment, from £1,000 up to £5 million.
Businesses across Wales can find out if they are eligible online at www.developmentbank.wales.
The launch, as pictured above at the Homestead Nursery in Gresford that was purchased with help from the a Wales Business Fund earlier this year, also saw the release of this quick ‘explainer’ video as well: