Small and medium-sized enterprises (SMEs) in Wales have been hit hard by the coronavirus pandemic, with most having been forced to shut their doors to adhere to government lockdown procedures.
However, there is some light at the end of the tunnel for these businesses, as the government has announced it will provide Bounce Back Loans of between £2,000 and £50,000.
Companies that need urgent cash to remain operational will be able to access funding within a few days, without having to pay anything back for 12 months.
This finance comes with a 100 per cent UK government-backed guarantee for lenders and will be interest free for the first year.
Business News Wales reported secretary of state for Wales Simon Hart as saying SMEs in Wales have been deeply affected by the crisis.
He stated: “That’s why we have introduced a package of measures to support those businesses who are central to our communities. This includes this new loan scheme which will grant them faster access to vital funding sources, enabling them to better deal with the economic hardship caused by the virus.”
While the funding is available for small businesses throughout the UK, it is particularly relevant for those in Wales, as nearly all companies here are SMEs.
Heather Myers, chief executive of South and Mid Wales Chambers of Commerce, stated: “It throws a lifeline to getting support to our smaller companies.”
Enterprises will be invited to apply for the funding from Monday May 4th.
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