29th April 2020

Development Bank Updates On COVID-19 Loan Scheme Progress

Almost 600 businesses across Wales have been awarded funding totalling £36m by the Development Bank of Wales since the Covid-19 Wales Business Loan Scheme was launched.

The £36m approved to date includes 533 loans of less than £100,000 and 222 of which are less than £25,000.

With more than 80 per cent of applications processed having been approved, 567 loans have gone to small and micro businesses across Wales safeguarding about 4,570 jobs.

The average deal size is £61,000 and the development bank said the average turnaround time for a decision on funding is around ten days.

More than 1,600 applications were received in the first week for the £100m scheme with the first loans agreed on Thursday 2 April just three days later.

Economy minister Ken Skates said: “I want to pay tribute to the staff of the Development Bank of Wales who have worked tirelessly alongside the Welsh Government to develop what I believe to be the most comprehensive package of support for business in the UK.

“In such a short time they are processing three times the number of applications for support usually received in a year. By doing so they have delivered vital funds to firms which form the lifeblood of the Welsh economy with maximum speed and efficiency, helping to safeguard thousands of jobs.”

Development Bank of Wales chief executive Giles Thorley added: “Every single available person in our team is focussed on processing applications as quickly as possible to ensure that we can get support to those businesses facing unprecedented difficult cashflow challenges as a result of Covid-19.”

Ben Cottam, head of external affairs at FSB Cymru, said it had been “very encouraging to see the speed with which the Development Bank has moved to support some of these businesses”.

“We know that for these businesses, this funding represents a lifeline.”