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Development Bank of Wales to invest £440m in businesses

Tom Belger | 07:27 Wednesday 25th October 2017

The Development Bank of Wales has revealed that it has around £440m available to invest in Welsh businesses following its launch last week.

Created by the Welsh government, the new development bank aims to make it easier for businesses to get the capital they need to start-up, strengthen and grow.

To mark its launch, the bank has introduced a £100m Wales Flexible Investment Fund, which 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.

The Development Bank of Wales is also trebling the amount of micro finance available from £6m to £18m as it develops further funds.

"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,” said Ken Skates, economy and infrastructure secretary.

“As our businesses thrive and repay the loans, that money will be reinvested, meaning that the capital doesn't just help businesses succeed now, it funds the next generation of Welsh success stories too.”

The development bank is targeted to have an impact of over £1bn on the Welsh economy and, as a result, is expected to support 1,400 businesses with those companies safeguarding over 20,000 jobs.

“99% of all businesses across Wales are micro to medium size,” said Giles Thorley, chief executive of the Development Bank of Wales.

“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.”

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