£21million finance package to expand SMEs in Wales

Economy Minister Edwina Hart has announced £21m of new finance to help Small and Medium Enterprises (SMEs) in Wales expand and create or safeguard more than 1,800 jobs.

The money will be distributed to Welsh businesses through two Finance Wales funds and the Welsh Government’s new £5m Repayable Fund for SMEs, which offers repayable finance of between £50,000 and £500,000 to help SMEs grow and create jobs. The fund aims to create and/or safeguard at least 500 jobs.

The Wales Micro-Business Loan Fund, which is managed by Finance Wales, will receive a £6million boost, while a new £10million Wales Technology Venture Investment Fund will allow Finance Wales to invest in innovative technology businesses.

Since its launch in 2012, the Wales Micro-Business Loan Fund, which provides finance of between £1,000 and £50,000 for micro-businesses in a range of sectors, has invested over £5m in nearly 200 companies leading to the creation and safeguarding of over a thousand jobs.

The additional £6m will help businesses create or safeguard a further 1,000 plus jobs and attract an additional £3.6m in investment.

The Wales Technology Venture Investment Fund is providing funding for innovative technology businesses – already based in, or locating to Wales – with the ambition and potential to become international market leaders. The fund aims to attract an additional £20m in private finance, leading to the creation and safeguarding of at least 300 jobs.

Mrs Hart said:

“As a pro-business government we recognise the importance of accessing finance and cash flow for SMEs. This new money will help even more Welsh businesses access the funds they need to expand and create jobs when funding might not be available from other sources.

“Small businesses are the lifeblood of the Welsh economy. Over 99% of businesses in Wales are SMEs and they employ 60% of the people working in the private sector. We want to see our SMEs flourish to realise our ambitions for creating economic growth and new jobs.”

The Minister made the announcement during a visit to Polar Lodges in Pembroke Dock. Established in 2010 by Louise and David Embra, the company manufactures a range of high quality static caravans and timber lodges. The company received a Micro-Business Loan from Finance Wales, which has helped them invest in new equipment.

David / Louise Embra of Polar Lodges said:

“We set up our business making garden furniture in 2010 and since then we’ve expanded rapidly and today we make a range of caravans and lodges which we sell throughout Europe. We’ve combined the micro loan we received from Finance Wales with our own money and other funding to buy the additional equipment we need to manufacture our caravans and timber lodges more cost effectively.”

Welcoming the Welsh Government’s announcement, Gareth Bullock, Chairman of Finance Wales said:

“This announcement is welcome news as it clearly demonstrates the Welsh Government’s commitment to ensuring Welsh SMEs have access to the growth finance they need.  The Welsh Government has now made funds of almost £100m available to Finance Wales since 2012 to help Welsh SMEs with a range of funding requirements.

“Micro-businesses and innovative technology businesses play a crucial role in the Welsh economy and with a £6m boost for the Wales Micro-business Loan Fund and an additional £10m for innovative Welsh technology businesses, Finance Wales can provide these businesses with the backing they need to make an even greater long-term impact.”