An investment fund, set up to support the growth of small businesses in the Convergence region of West Wales and the Valleys, has been made more responsive to small business needs, the Welsh Assembly Government and Welsh Local Government Association announced yesterday.
The Local Investment Fund, which is administered by local authorities in the North-west, South-west and the Valleys areas, will now be able to offer funding of up to £10,000 to meet up to 40% of the cost of capital investments such as buying new equipment or extending business premises. The previous limit on most funding applications was £5,000.
Deputy First Minister Ieuan Wyn Jones said:
“SMEs account for more than half of total employment in Wales and are the backbone of the Welsh economy. Through our new policy Economic Renewal; a new direction we are taking a fresh approach to encouraging economic development. We are investing more in infrastructure, skills, and research and development to create the best conditions for all businesses to grow and flourish in Wales.
“Our new economic policy will help SMEs to grow by fostering both favourable conditions and infrastructure. We will develop high quality and sustainable infrastructure to underpin economic growth. An example of our commitment is for all businesses in Wales, no matter what their size, to have access to Next Generation broadband by the middle of 2016 and a major improvement in mobile phone coverage.
“The changes being announced today to the Local Investment Fund are about giving flexibility to local authorities to invest in SMEs in their area. This fits into our vision for Economic Renewal for the Assembly Government to take on a new and more strategic role, while enabling local authorities to determine the detailed actions that best suit their communities.”
Welcoming this announcement on behalf of local government, Councillor Chris Holley, WLGA Spokesperson on Regeneration and Europe said:
“We welcome the fact that the Welsh Assembly Government has formally agreed to allow the local authority led Local Investment Fund the flexibility to offer up to £10,000 in funding to local businesses.
“This will enable the Local Investment Fund to meet local demand for support during this increasingly challenging economic and financial climate that we are all facing. It will benefit a number of small businesses across our most deprived communities which are finding it extremely difficult to secure access to the finance they need both to survive and grow.
“We look forward to further joint working with the Welsh Assembly Government as they roll out the Economic Renewal Plan for Wales and welcome the recognition of the key role that local authorities are and can play in achieving sustainable economic renewal”.
Janet Jones, Chair of the FSB in Wales, said: “We welcome this news which will help the Local Investment Fund operate more effectively and contribute positively to the economic growth of small businesses in Wales, and congratulate the Deputy First Minister for taking this on board.”
“We would also like to see greater flexibility regarding this fund as this is something we have been calling for a long time. We would like to see this addressed alongside the welcome extension in funding limits”.
The Fund, which is available in the Convergence region and accessed through local authorities, has a total fund of £23 million from the European Regional Development Fund (ERDF). It expected to generate total investment of approximately £54 million and help create some 3,000 jobs.
So far a total number of 928 applications for funding from the Local Investment Fund have been approved. It is expected to help create some 3,000 jobs over the next four years.
For further information regarding the Local Investment Fund, including details of how to apply, please see www.lifcymru.co.uk
For further information please call Leon Griffiths 029 2089 8557 or Rhiannon Morgan 01685 729346
