Interest rate savings for SMEs in Welsh Enterprise Zones
From today, small and medium-sized businesses (SMEs) located in
Welsh Enterprise Zones can benefit from a two per cent reduction in
the interest rates charged on new loans from Finance Wales.
Eligible SMEs locating to one of the seven zones can also
qualify for the reduction.
For example, a 2% interest rate reduction on a £250,000 loan
over 5 years based on an interest rate of 9% would reduce the rate
to 7% and save £14,900 in interest.¹
Welsh SMEs can apply for business loans as well as equity and
mezzanine investments of between £1,000 and £2 million at a time
from Finance Wales.
Interest rates on Finance Wales’ loans, which are fixed for the
full loan term, are calculated on an individual basis and take
account of a range of factors including risk. Finance Wales
can also continue to invest in SMEs as they grow.
Welcoming the announcement First Minister Carwyn Jones said:
“Welsh Enterprise Zones are a key Welsh Government policy focused
on sustainable growth by improving the competitiveness of the Welsh
economy and creating jobs. Access to finance is essential for
business growth, so Finance Wales’ announcement is welcome news. It
adds to the other financial benefits Welsh Enterprise Zones can
offer, such as enhanced capital allowances and business rates
“A wide range of small and medium-sized businesses can benefit from
the comprehensive range of investment funds available from Finance
Wales. I urge businesses seeking investment to contact
Finance Wales to discuss their growth plans and the potential
funding options open to them.”
The interest rate reduction, which will be available to eligible
SMEs until further notice, will apply to loans from the Wales
JEREMIE Fund, Wales SME Investment Fund as well as the Wales
Micro-business Loans Fund.
Peter Wright, Strategic Investment Director at Finance Wales
said: “Both Finance Wales and the seven Welsh Enterprise Zones have
a common goal in encouraging sustainable growth in the Welsh
economy. By reducing our interest rates we hope to encourage
SMEs, whether they’re already located in an enterprise zone or
thinking of moving to one, to think about investing for growth.
We’re pleased to be able to help strengthen the range of financial
benefits on offer to businesses located in enterprise zones.”
Information on the seven enterprise zones an be accessed at:
Businesses considering locating to a Welsh Enterprise Zone should
contact the Welsh Government on 03000 6 03000 or by e-mail at:
SMEs wishing to apply for investment should contact Finance Wales
on 0800 587 4140, e-mail firstname.lastname@example.org or