There are still a number of finance options for businesses in Wales who need finance during the Coronavirus pandemic.
Schemes and initiatives
Building upon infrastructure which is in place for an existing scheme, this fund is available to SMEs and enables lenders to provide finance of up to £5 million to support smaller businesses affected by the coronavirus crisis.
It is being administered by the British Business Bank, with funding provided by a range of lenders who will benefit from a government guarantee.
Please note this fund is not offered by the Development Bank of Wales.
As of 2nd April, the scheme has been expanded to benefit more smaller businesses across the UK, with the following features:
- Personal guarantees won’t be taken for facilities under £250k. For facilities over £250k, personal guarantees may be required, but will be capped at 20% of the outstanding balance after business asset recoveries
- Businesses with sufficient security to access funding outside of the scheme are now eligible for the scheme
- Lenders will apply all these changes retrospectively to all applications made since the launch of the scheme
The Welsh Government has announced the launch of the Economic Resilience Fund. Businesses can benefit from a £400 million emergency pot providing:
- grants of £10,000 for micro-businesses employing up to nine people. This includes sole traders employing staff. Qualifying businesses will be able to apply by mid-April.
- grants of up to £100,000 for small and medium sized firms with between 10 and 249 employees. Qualifying businesses will be able to apply by mid-April.
- support for larger Welsh companies, which are of critical social or economic importance to Wales. This element will be open to qualifying businesses within the next two weeks.
For more information click here.
Full details on the eligibility criteria can be found on the Business Wales Fund Checker.
Under this scheme, small and medium-sized businesses can borrow from £2,000 up to 25% of their turnover. The maximum loan available is £50,000. The government provides lenders with a 100% guarantee and covers the first 12 months of interest payments. After 12 months, the interest rate is set at 2.5% per annum. Find out more.
The Future Fund provides convertible government loans ranging from £125,000 to £5 million to innovative UK-based companies that are currently being impacted by the coronavirus. The loans are subject to at least equal match funding from private investors. The scheme is being delivered by the British Business Bank and is initially scheduled to be open for applications till the end of September 2020.
To find out more about applying for the scheme and the eligibility criteria please click here.
The £100m Covid-19 Wales Business Loan Scheme announced by Welsh Government and the Development Bank of Wales supports businesses that are experiencing cash flow difficulties as a result of the pandemic.
*Important update* Due to the unprecedented volumes of applications we’re now fully subscribed for the Covid-19 Wales Business Loan Scheme.
Businesses seeking a loan should consider the Coronavirus Business Interruption Loan Scheme available for SMEs through over 40 accredited UK lenders.
Please visit Business Wales for more information on support for businesses
To help limit and manage the commercial impact of Covid-19 we are offering a 3-month capital and monitoring fee repayment holiday for customers on request.*
We realise that cash flow management may be a key concern and this arrangement will remain in place until 30th June 2020.
*Unfortunately we are unable to offer this service to property development loans
If you have any other concerns or need to speak to us about your investment, please contact your portfolio executive or email email@example.com
Aimed at larger corporates who are strong credits (investment grade) but experiencing liquidity pressures due to the impact of COVID-19. The CCFF will allow large corporates to access short term financing through issuing Commercial Paper (“CP”). The fund will be managed and administered by the Bank of England (“BoE”) on behalf of HM Treasury.
Find out more about the COVID-19 Corporate Financing Facility.
Advice and support