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Coronavirus - Support for Welsh businesses

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

Apply for Coronavirus Business Interruption Loan 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

This service is currently no longer being offered.

If you have any other concerns or need to speak to us about your investment, please contact your portfolio executive or email info@developmentbank.wales

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.

The government will pay grants to cover 80% of salaries (up to £2,500 a month) for those who are kept on by their employers but unable to work. Find out more.

The government has also published general guidance for employers and employees.

All VAT payments are deferred for three months, from 20 March 2020 until 30 June 2020. This is an automatic offer for all UK businesses, with no applications required. Any VAT not paid back during the deferral period will be due at the end of the 2020 to 2021 tax year.  Find out more.

Advice and support

Business Wales have published general advice for businesses and are available on 03000 6 03000.

HMRC is offering flexible solutions to help business in the face of disruption caused by COVID-19 and has a helpline for businesses concerned about paying their taxes.