Business Minister Edwina Hart today announced two major new funding packages totalling £55million to stimulate the Welsh economy and support business growth across Wales.
This huge injection of funding could create up to 5000 jobs and safeguard hundreds more. It is the latest in a series of Government initiatives to support Welsh businesses through the global economic crisis.
The £40million Wales SME Investment Fund and the £15m Wales Economic Growth Fund are being launched by the Welsh Government as a direct response to the continuing difficulties faced by businesses in Wales in raising finance. The stimulus provided by the two funding packages will help businesses of all sizes and in all sectors across all areas of Wales.
Announcing the stimulus package, Minister for Business and Enterprise Edwina Hart said: “The Welsh Government is listening to the needs of businesses in Wales. I believe this dual package of support will provide the catalyst for growth, enabling businesses to invest in capital projects that will result in the creation of up to 5,000 new jobs and the safeguarding of many hundreds more across Wales.
“The existing European-funded JEREMIE Fund has proved the best performing fund of its type in the UK, supporting over 350 businesses to gain over £75million funding in just over two years, but less than half of the SMEs in Wales meet the eligibility criteria set out by the European Commission.
“Our new £40million Wales SME Investment Fund will complement JEREMIE and ensure more SMEs, including those who sell their goods and services to consumers rather than businesses, become eligible for repayable capital investment from Finance Wales. To maximise this economic stimulus, private finance will mean that for every £1 of Welsh Government funding provided, another £3 of private sector funding will go to fund Welsh SMEs.”
Mrs Hart said the Wales Economic Growth Fund is being established as a non-repayable grant funding programme to provide short-term assistance to businesses in Wales to respond to the current global economic crisis.
She said: “The £15million Wales Economic Growth Fund is a short term, fast track grant fund for business, providing immediate access to capital funding for investments that aim to complete in 2012 and create and retain jobs. It will significantly expand on the existing range of commercial funding available and is a fast track approach to get maximum benefits to the Welsh Economy in 2012.”