Welsh business loan scheme fully subscribed in one week

A £100m business loan scheme to help firms during the coronavirus crisis has been fully subscribed within its first week. 

The Covid-19 Wales Business Loan Scheme was launched on 30 March as part of a £500m package to help businesses during the pandemic. 

The Welsh Government announced today (8 April) that the loan scheme received 1,500 applications in just one week and is now fully subscribed.

The scheme is being managed by the Development Bank of Wales (DBW) and ministers said the first loans will reach applicants by the end of this week. 

‘The level of demand in just over one week is clear proof that this was the right product at the right time,’ said Welsh economy, transport and north Wales minister, Ken Skates. 

‘Whilst DBW would normally expect to complete around 400 investments over the course of a year, in little over a week they have received a staggering 1,500 applications. 

‘I will be writing to the Chancellor calling on him to respond and learn from the success of the scheme and to release more funding so that we can launch a second phase of DBW support,’ added Mr Skates. 

‘It’s also absolutely vital that the UK government put more pressure on providers of the Business Interruption Loan Scheme to get money out of the door and into the pockets of businesses. It is taking far too long to reach many firms and deliver exactly what’s needed in a time of financial crisis.

‘As a Welsh Government, we will be announcing further details shortly on the £400m emergency pot from the Economic Resilience Fund with the aim of being open to applications next week.’

Photo Credit – Julia Avis Phillips (Pixabay)