The Welsh Government is making a further £6 million available to help businesses manage the ongoing disruption and uncertainty caused by Brexit, Economy Minister Ken Skates has announced.
With continued uncertainty remaining around the UK’s departure from the European Union following the recent extension from today until to 31 January 2020, the Welsh Government is again taking action to support the business community during these challenging times.
The Welsh Government will continue to prepare for both an agreed exit and a no deal exit from the EU, to protect the interests of Wales and its people.
The funding builds on the success of the Welsh Government’s Brexit Business Resilience Grant Fund, delivered by Business Wales, which made available nearly £2.5 million additional funding to 51 businesses across Wales.
The £6 million now being made available to businesses will include £5 million of loan funding through the Development Bank of Wales to support companies with capital investment projects needed to mitigate the effects of Brexit.
A £1 million capital grant fund administered through Business Wales will be co-invested alongside the Development Bank’s loan.
The integrated offer will mean businesses can apply for grant funding of up to 20% eligible project costs to a maximum value of £50,000. This will be matched by a loan of the same amount or more.
Economy Minister Ken Skates said:
The shambolic situation our country finds itself in due to the UK government’s inept handling of Brexit has left the business community in Wales with yet more uncertainty and worry.
In my recent meeting with the UK government Business Secretary I reiterated our concerns about the impact of the current Brexit proposals on the future of the Welsh economy, and our fears that this would damage our economic outlook and put Welsh jobs on the line.
The Welsh Government will continue to do all it can to support firms in both a deal and no deal scenario. We are committed to protecting the interests of Wales and its people and today’s announcement is another prime example of the important measures we’re taking at this time of ongoing uncertainty.
Our Brexit Business Resilience Grant Fund has already supported businesses in preparing for Brexit and this additional £6m again shows our commitment to businesses in Wales.
Chief Executive of the Development Bank of Wales Giles Thorley said:
This additional funding from the Welsh Government will help support businesses with their preparations during this period of economic uncertainty.
The Development Bank is committed to supporting Welsh businesses and this new funding offers an important boost for micro to medium-sized businesses impacted by Brexit.
Loans provided by the new fund will help safeguard jobs and support business continuity across Wales.
In-line with the Welsh Government’s Economic Action Plan, businesses seeking to access the Brexit Resilience Fund will need to demonstrate their commitment to inclusive growth, to fair work, to promoting health in the workplace and to reducing their carbon footprint.
A combined application process is in place with businesses applying once for both the Development Bank loan and Business Wales grant elements of the fund.
Businesses will need to show that public sector funding is required for the Brexit related project to happen.
To find out more and check whether their project may be eligible, businesses should visit the Business Wales Brexit Portal, the Development Bank of Wales website or contact Business Wales on 0300 060 3000.