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Covid-19 Wales Business Loan Scheme

The Welsh Government and the Development Bank of Wales have announced the £100m Covid-19 Wales Business Loan Scheme to support businesses affected by the Covid-19 outbreak.

The Scheme will be available from the Development Bank of Wales for a limited period. It is intended to provide support to businesses who are experiencing cash flow difficulties as a result of the pandemic.

The loan scheme will work alongside the UK wide Coronavirus Business Interruption Loan Scheme, other Welsh Government and UK Government support offers, providing more vital options for Welsh businesses.

Key features

  • Loans between £5,000 to £250,000, maximum loan levels apply
  • 12-month capital and interest repayment holiday
  • No arrangement or monitoring fees
  • 2% interest fixed for 6 years (includes the 12 month holiday)
  • Partially secured lending depending on the size of the loan, see below for details

Please read the information below carefully before making an application

All Wales-based SMEs who have been trading 2 years or longer, including sole traders, partnerships, limited companies as well as social enterprises.

We recommend that you exhaust all other avenues of support before applying for a loan as some of the other measures may be more suitable for your circumstances.

Further information about other sources of support can be found at:

Business Wales

UK Government

Federation of Small Busineses (FSB)

To apply you must use our online application form and have the following documents ready:

For loans between £5,000 - £25,000 (Sole traders, Partnerships, Other)

  • Statement of Assets & Liabilities
  • Previous 3 months bank statements 

For loans between £5,000 - £25,000 (Limited Company)

  • Previous 3 months bank statements 

For loans between £25,000 - £100,000 (all businesses)

  • Previous 3 months bank statements 

For loans over £100,000 up to £250,000 (all businesses)

  • Previous 3 months bank statements
  • Historic accounts (2 years)
  • Completed cash flow forecast template - download template
  • Up-to-date Management Information (inc. P&L, Balance Sheet) 

All supporting documents are mandatory, please help us to process applications as quickly as possible by following these requirements.

Applications without the correct documentation will not be progressed.  

To ensure that as many businesses can access the fund as possible, we are restricting the amount an individual business can apply for in the following way:

The maximum loan you can apply for is the higher of;

  • £10,000 per full-time equivalent employee (a full-time equivalent is calculated at 37 hours per week)

Or

  • 25% of your last year’s turnover

As a responsible investor, we will also consider your ability to service the loan. This will involve looking at your historic profitability to test the loan is affordable, when business returns to normal after the outbreak.

A business may only apply once to the scheme, this includes formal and informal Groups of companies.

Formal Groups are two or more companies that share a holding company or subsidiary relationship.

Informal Groups, for the purposes of this scheme, could be businesses sharing common ownership, operating in similar markets or with similar customer bases.

The fund has been created to give welsh SMEs the liquidity they need to trade through this period of business interruption, therefore the loan should not be used to repay existing borrowing.

We are anticipating very high demand for this scheme which will have an impact on our usual delivery timescales. Please be reassured that we are doing everything we can to process applications as quickly as possible. When your application is submitted with all supporting documentation, we will give you an estimated timescale for a decision and keep you updated through the process.

Security taken will be a 20% personal guarantee to a maximum of £25,000 for all investments, and for amounts over £100,000, a debenture will also apply.

We are still accepting applications for our other products and can offer flexible repayment holidays on new loans. Please be aware that due to the volume of applications we are handling, loans may take longer to process than usual.

No, the Development Bank of Wales is not a participating lender for this scheme. Further information about this scheme can be found on the British Business Bank’s website.

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