The UK’s first publicly-owned development bank has officially opened for business to help Welsh businesses to grow.
Created by the Welsh Government, the Development Bank of Wales will provide a range of investment finance to SMEs, including micro-businesses.
In total, the Development Bank of Wales has around £440m available to invest in Welsh business.
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 £5m.
Through the bank, the Welsh Government is trebling the amount of micro finance available from £6m to more than £18m, with further funds also being developed.
The bank is expected to support 1,400 businesses with those businesses creating and safeguarding more than 20,000 jobs.
Economy and Infrastructure Secretary, Ken Skates AM 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: “Ninety-nine percent 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.”