Development Bank of Wales Launches £100 Million COVID-19 Loan Fund

Development Bank of Wales Launches £100 Million COVID-19 Loan Fund

Loans, at favourable interest rates, are available for companies in Wales that are experiencing cash flow problems as a result of the coronavirus pandemic.

The Welsh Government and the Development Bank of Wales have launched a £100 million fund to support businesses in Wales affected by the COVID-19 outbreak.

Limited companies, partnerships, sole traders and social enterprises operating for more than two years will be able to access loans of between £5,000 and £250,000, fixed at 2% with an interest and capital repayment holiday for the first 12 months.

There will be no arrangement or monitoring fees. Applicants need to demonstrate that they were able to service the level of debt prior to the coronavirus outbreak.

Each business can make just one application and the loan amount will be limited, based on the number of people employed by the business or a calculation based on profit or turnover. The Development Bank has mobilised all teams to respond to demand and applications will be processed as quickly as possible.

Minister for Economy, Transport and North Wales, Ken Skates, said:

‘This £100 million loan scheme … is an absolutely vital part of the £500 million Economic Resilience Fund we have just announced and will be crucial in supporting companies experiencing cash flow problems as a result of the pandemic.

‘The Welsh Government is absolutely committed to helping businesses deal with the economic impact of coronavirus – and we are responding with an unprecedented package of support for an unprecedented time.’

The scheme will be available for a limited period only and applicants are advised to apply at their earliest opportunity.

More information about this funding opportunity and the application process is available on the GRANTfinder funding information platform. GRANTfinder provides up-to-the minute content, insight and analysis on funding news and policy. To find out more about how GRANTfinder can keep you in the know, and subscription fees, contact us today.