Start Up Loans – which provide low interest finance for entrepreneurs – have helped nearly 300 business start ups since they were launched in Wales just ten months ago.
To date £2.2m has been drawn down by 291 new businesses across Wales – helping to create brand new businesses and supporting recently created enterprises.
Economy Minister Edwina Hart said: ”These figures are very encouraging and the take up shows these low interest loans are having a real impact, helping to create new business start ups and supporting young enterprises.
“They are providing a real boost for entrepreneurs of all ages and proving to be an important part of the wider business support package from the Welsh Government which is geared to increase the number of new businesses.”
The loans, which were launched in Wales in October 2013, are available as part of the Welsh Government’s Business Wales Start up Service. The availability of low interest rate loans for starts ups was one of the recommendations of the Welsh Government’s Access to Finance Review led by Professor Dylan Jones- Evans.
The loans from the UK Government backed scheme are to be paid back within five years at a fixed rate of interest currently set at 6%. The maximum loan amount is £25,000, with the average in Wales standing at £7,658.
Start Up Loans CEO, Tim Sawyer said: ‘With nearly 300 businesses created and just over £2m loaned to start ups, we are delighted with the success of the scheme so far in Wales.
‘There was clearly an appetite amongst Welsh entrepreneurs of all ages to start out on their own. We will continue to feed this appetite and encourage the entrepreneurial spirit which is without doubt alive and kicking in Wales.’