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21/10/2013

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 relief.
 
“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: http://enterprisezones.wales.gov.uk/
Businesses considering locating to a Welsh Enterprise Zone should contact the Welsh Government on 03000 6 03000 or by e-mail at: businesssupport@wales.gsi.gov.uk
 
SMEs wishing to apply for investment should contact Finance Wales on 0800 587 4140, e-mail info@financewales.co.uk or visit http://www.financewales.co.uk/